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* Talks with funds, institutional investors -paper
* Looking at several scenarios, no decision yet -SNS Reaal
AMSTERDAM, Jan 25 (Reuters) - Troubled Dutch bank and insurance group SNS Reaal is in talks with cash-rich domestic and foreign investors about a capital injection of 1 billion to 1.5 billion euros ($1.3-2 billion), a paper said.
SNS Reaal, which received 750 million euros of state aid in 2008 at the height of the financial crisis, is widely expected to require a second state bailout because of losses at its property unit and is planning to announce a restructuring plan by next month.
SNS Reaal is talking to investment funds as well as a few institutional investors from inside and outside the European Union, Dutch financial daily Het Financieele Dagblad reported on Friday, citing unnamed sources in the financial sector.
An SNS Reaal spokesman said: "We are investigating several scenarios. We have not yet taken a decision. We hope to make statements at a later time."
Talks have already been taking place for a few months, the paper said, citing the sources.
Political sources in The Hague, where the Dutch government and parliament are located, have taken into account the likelihood that the Dutch state will nationalise SNS Reaal within a few days, the paper said.
Dutch daily De Telegraf reported on Wednesday that the nationalisation of SNS Reaal was a "serious option", which may cost the government several billion euros.
All aid plans call for the troubled property finance operations, which have recorded more than 1.3 billion euros of net losses since 2009, to be set apart in a so-called "bad bank", which would be wound down in ten to 15 years, Het Financieele Dagblad said.
A capital injection of 1 billion euros would mean a change of ownership because SNS Reaal's market valuation is around 200 million euros, the paper said. ($1 = 0.7477 euros) (Reporting by Gilbert Kreijger; Editing by Helen Massy-Beresford)