Landsbanki says it will not be selling its 35% share in Highland Group Holding, the Baugur-led consortium that bought House of Fraser for £351m in 2006.
The bank and HoF have issued a joint statement saying that they have held “very positive discussions”.
Baugur’s UK arm was placed into administration with PricewaterhouseCoopers after talks with Landsbanki over the group’s £1b debt broke down.
The move raised speculation that the move would see Baugur’s stakes in many UK high street retailers go up for sale.
A statement from HoF yesterday said: “House of Fraser and Landsbanki would like to stress that the recent events surrounding Baugur have no impact on the trading or banking position of House of Fraser and it is business as usual.”