LONDON (Reuters) - Bailed-out U.S. insurer American International Group <AIG.N> plans to file a prospectus for a multibillion-dollar IPO of its Asian life insurance unit before Christmas, the Financial Times reported on Thursday.

The Hong Kong IPO of American International Assurance is expected to raise $10 billion to $20 billion, the paper said.

"AIA and its advisers are working round the clock to submit the filing before Christmas," the paper quoted a person familiar with the matter as saying. "Nobody involved wants this to hang around for much longer."

Filing a draft prospectus with stock exchange authorities before Christmas would trigger a formal three-month process that would set a path for a listing in the second quarter of 2010, the paper said.

AIG has appointed Deutsche Bank <DBKGn.DE> and Morgan Stanley <MS.N> as its joint global coordinators of the IPO, which will generate huge fees for the banks involved.

Goldman Sachs <GS.N> and Citigroup <C.N>, which both advised on an aborted sale of AIA earlier this year, have emerged as front runners for more junior book-runner positions, along with Credit Suisse <CSGN.VX><CS.N>, the Financial Times said, citing people familiar with the situation.

(Reporting by Kylie MacLellan; Editing by Gary Hill)