Deutsche paid £395m ($561m/EUR641m) for Coral in 1998 through its Morgan Grenfell Private Equity arm. It has now appointed Lehman Brothers to sell the business.
Coral's rivals Stanley Leisure and Rank Group are rumoured to be interested in buying Coral. But a sale is unlikely to be completed until the bookmakers resolve their ongoing dispute with the horseracing industry over what they will have to pay to show races in the shops from May this year.
The dispute with the British Horseracing Board has also indefinitely postponed the flotation of the country's second largest bookmaker William Hill.
