General Electric is planning to sell its appliance division, one of the oldest businesses in the conglomerate’s 120-year history, people briefed on the proposal said Wednesday.

A sale of the unit, which makes refrigerators, microwaves and washer-dryers among other items, could fetch at least $5 billion, these people said. GE and its investment bank, Goldman Sachs, have been laying the groundwork for an auction over the last few weeks.

The sale would also mark the end of a brand of household products that made General Electric a fixture in American homes over the last century.

Jeffrey Immelt, its embattled chief executive, has been trying to refashion General Electric in the face of widespread calls to break up one of America’s largest companies. That mission has taken on greater urgency with the credit squeeze and the slumping economy, which have affected many of GE’s businesses.

The appliance unit, which helped make GE an American icon, may end up in foreign hands. The division, based in Louisville, Ky., has faced increased pressure in recent years from Chinese manufacturers, which have been growing at double-digit rates thanks in part to significantly lower costs.

Asian manufacturers are expected to be particularly drawn to the division, seeking to take advantage of GE’s widely known brand name as they try to become global businesses. Lenovo, the Chinese electronics company, successfully acquired IBM’s personal computer division in 2004, in part to help establish itself on the world stage.

Wall Street bankers are rushing to lay claim to potential bidders for the division. Among the expected suitors are Haier of China, which bid on Maytag two years ago; LG Electronics and Samsung, both of South Korea; Bosch of Germany; Electrolux of Sweden, which makes Sears’ Kenmore line of appliances; and Controladora Mabe, a GE partner based in Mexico.

As part of a potential sale, GE is likely to hand over a license to use the GE brand for a short period of time, the people briefed on the proposal said. After the initial license for using the General Electric brand expires, the buyer of the appliance unit would be allowed to continue to use the Monogran and Profile badges.

The arrangement is similar to the way Lenovo held onto the IBM badge for several years before using its own.

The news was first reported on Wednesday by The Wall Street Journal on its Web site.