TEL AVIV, Nov 17 (Reuters) - Food maker Strauss Group is preparing a public offering of its coffee subsidiary on the New York Stock Exchange in 2014, TheMarker financial newspaper reported on Sunday.

The offering is in accordance with an agreement with private equity firm TPG Capital, which has expressed interest in selling its 25 percent stake in Strauss Coffee.

In July, Strauss said it and TPG were examining options for the sale of TPG's stake in Strauss Coffee after TPG held the stake for five years.

TPG paid $293 million for the stake in 2008.

"The company continues together with TPG Capital ... to examine exit alternatives for TPG from Strauss Coffee. No decision has been made regarding exit options for TPG," Strauss said in a statement on Sunday in response to the report.

According to TheMarker, Strauss has chosen Goldman Sachs and Citi to underwrite the offering. The offering could value Strauss Coffee at $1.2-$1.8 billion, the report said.

Strauss, a maker of snacks, fresh foods and coffee, is a market leader in roast and ground coffee in central and eastern Europe as well as Brazil.

Its global coffee sales rose 0.9 percent to 992 million shekels ($282 million) in the second quarter while operating profit in the segment jumped nearly 72 percent to 99 million. Much of the growth in profit was due to improvement at its Tres Coracoes joint venture in Brazil.

Shares of Strauss were up 2.2 percent at 64.92 shekels in afternoon trade in Tel Aviv.