The initial public offering of Toys R Us, the world's largest toy retailer, is now expected in 2012, two sources told Reuters.

The company filed for an IPO of up to $800 million in May 2010. It had contemplated coming public in the first half of 2011, but delayed its IPO after lackluster holiday sales. It later contemplated a July IPO.

Toys R Us has made it through the U.S. Securities and Exchange Commission review process, so it could technically launch an IPO any time it wants -- yet it is expected to delay the offering until next year, one of the sources said.

The sources declined to be named as the information is not public. Toys R Us declined to comment.

(Reporting by Dhanya Skariachan and Clare Baldwin; Editing by Richard Chang)