MUMBAI (Reuters) - India's antitrust regulator has approved Singapore's sovereign wealth fund GIC's bid to acquire a stake in a firm owned by DLF for 89 billion rupees ($1.38 billion), the country's biggest real estate developer said in a statement late Saturday.

As part of the deal, Reco Diamond Pvt Ltd, an affiliate of GIC, will own a 33.34 percent stake in DLF's property rental company, DLF Cyber City Developers.

DLF had announced in 2015 that three shareholders in DLF Cyber City Developers would look to sell their stake to reduce conflicts of interest. The three shareholders were also among the founders of DLF.

($1 = 64.5500 Indian rupees)

(Reporting by Sankalp Phartiyal; Editing by Shri Navaratnam)