MOSCOW (Reuters) - Russian hypermarket chain Lenta, part-owned by U.S. private equity firm TPG and Russia's VTB Capital (>> Bank VTB OAO), plans a stock market flotation in London before the end of next month, two financial market sources said on Friday.

"The deal is proposed to be done before end of February but there is no decision yet," one source close to the deal said. Another source also said the deal was planned for February.

Lenta declined to comment.

Last year, sources familiar with the situation told Reuters earlier Lenta had picked JP Morgan (>> JPMorgan Chase & Co.), Credit Suisse (>> Credit Suisse Group AG), UBS (>> UBS AG), Deutsche Bank (>> Deutsche Bank AG) and VTB for a possible London stock market debut that could raise at least $1 billion.

(Reporting by Oksana Kobzeva; Additional reporting and writing by Maria Kiselyova. Editing by Jane Merriman)