MADRID - Abu Dhabi's Masdar is set to buy a 49% stake in Spanish utility Iberdrola's largest offshore wind project off Britain's eastern coast, known as East Anglia 3, Spanish newspaper Cinco Dias reported on Tuesday, citing unidentified market sources.

The acquisition will be worth around 2 billion euros ($2.14 billion), the report added, as the entire project is expected to be valued at some 4 billion euros.

Iberdrola declined to comment on the report. Masdar said it was unable to comment on "market speculation" as a matter of policy.

Masdar, a renewable energy company partially owned by the United Arab Emirates' sovereign wealth fund Mubadala, had already signed an exclusive deal with Iberdrola to develop the Baltic Eagle, a 476 megawatt (MW) offshore wind farm in German waters in the Baltic Sea.

The East Anglia 3 farm began construction last year and is scheduled to begin operations in 2026, according to Iberdrola. It is set to have a capacity of 1,400 MW, supplying around 1.3 million homes.

The asset is part of Iberdrola's planned macro offshore wind complex in the British North Sea, dubbed the East Anglia Hub, which includes East Anglia 3 and its two previous versions.

It is expected to generate 2,900 MW, requiring a total investment of 6.5 billion euros.

In 2019, Iberdrola sold a 40% stake worth more than 1 billion pounds ($1.20 billion) in East Anglia One to Macquarie's Green Investment Group subsidiary.

($1 = 0.9363 euros)

(Reporting by David Latona and Pietro Lombardi in Madrid; Additional reporting by Maha El Dahan in Dubai; Editing by Sonali Paul and Jan Harvey)