The British government has approved Czech billionaire Daniel Kretinsky's 5.3-billion-pound ($6.69 billion) takeover of Royal Mail owner International Distribution Services, the Financial Times reported on Monday.

The approval is set to be announced as early as Monday morning, the report said, citing people familiar with the matter.

International Distribution Services (IDS) and the Competition and Markets Authority, Britain's competition regulator, did not immediately respond to a Reuters request for comment.

Kretinsky and IDS had reached an agreement in May on the deal, which was expected to undergo intense government scrutiny, especially during an election year.

Royal Mail, whose iconic red post boxes with the Royal Crest dot the country, has struggled with labour strikes, competition and loss of market share.

Last week, Britain's media regulator imposed a 10.5-million-pound fine on Royal Mail for failing to meet delivery targets over the past year.

As part of the final deal, the UK government will retain a so-called "golden share" in the postal service, giving it special rights over the governance of the company, the FT report said.

($1 = 0.7917 pounds)

(Reporting by Pretish M J and Gursimran Kaur in Bengaluru; Editing by Sherry Jacob-Phillips)