Wells Fargo to use internal funds to repay TARP

* Bank will not raise additional capital

* Expects to repay TARP in the near future

NEW YORK, Sept 1 (Reuters) - Wells Fargo & Co (WFC.N) said on Tuesday it will repay its $25 billion U.S. government bailout funds without raising additional capital through an additional stock offering.

The San Francisco-based bank, the nation's 4th largest with $1.25 trillion in assets, joins a growing number of the nation's largest lenders attempting to repay the government for assistance last fall as part of the Troubled Asset Relief Plan, or TARP.

Bank of America Corp has offered to repay $20 billion of its $45 billion in total government investment, according to media reports on Tuesday.

A Wells Fargo spokeswoman declined to comment on when the bank will repay its U.S. government stock investment.

Wells Fargo shares dropped 4.76 percent in Tuesday trading as part of a larger retreat in bank stocks, closing at $26.21 per share. But the stock cut some of its losses after the announcement by Wells Fargo Chief Executive Officer John Stumpf in a Bloomberg Television interview.

In after-hours trading the stock was up 5 cents. (Reporting by Joe Rauch; editing by Carol Bishopric)