The company is working with American bank Goldman Sachs to explore options for selling the division.
The German company, which specializes in everything from auto parts to submarines, abandoned the idea of splitting its steel business last year after failed attempts to list, sell or find a merger partner for Europe's second-largest steelmaker.
ThyssenKrupp's steel division could be worth 1.5 billion euros ($1.6 billion), excluding pension liabilities, down significantly from 4 billion euros thanks to higher interest rates.
The company believes a sale, merger or spin-off is currently the best solution for the energy-dependent business, which will need billions in investment to transition to carbon-free production in the coming years.
The obstacle to a quick sale of ThyssenKrupp's steel division is known to be a lack of investment that weakens the company's competitiveness, as well as opposition from unions, which hold half of the seats on the supervisory board and wield great influence over the steel division.
Parties interested in buying the division include private equity group CVC, Brazil's CSN and India's Jindal Group. ThyssenKrupp shares rose 5% on this news.
A possible sale of Thyssenkrupp Steel Europe, which has long been a mainstay of German industry, will be among the topics to be discussed at the supervisory board meeting scheduled for March 31, 2023.