AIB has confirmed this evening that it is selling its Polish interests for €3.1bn.
As had been speculated, Spanish banking giant Banco Santander has purchased AIB's 70% shareholding in Bank Zachodn.
Santander has also agreed to pay €150m for AIB's stake in BZ-WBK.
Group Managing Director Colm Doherty said the sale will generate significant capital for AIB and "represents the first step of the recapitalisation plan set out in March".
The sale will now have to get the backing of AIB's shareholders at an Extraordinary General Meeting.