The US government plans to sell its last holding in rescued banking giant Citigroup, the Treasury Department said Monday.

The Treasury said it would hold a one-day public auction Tuesday of its remaining 465 million warrants in the bank.

"The proceeds of this sale will provide an additional return to the American taxpayer from Treasury's investment in the company beyond the dividend payments it received on the related preferred stock and the profit received from the sale of shares of common stock and trust preferred securities," the department said in a statement.

Treasury received the warrants, which give the right to buy underlying securities, as part of its $45 billion rescue of Citigroup to help it weather the 2008 financial crisis.

The government says it has not only recovered its initial investment in Citi, once the world's largest bank, but an additional $12 billion in dividends and interest.

The department said that Tuesday's offerings were expected to be priced through a modified Dutch auction.

Such an auction sets a market price by allowing investors to submit bids at certain increments above a minimum price specified for each auction.

Warrants for two groups of common shares will be offered for sale at a minimum price of 60 cents for 255 million "A" warrants and 15 cents for 210 million "B" warrants , the Treasury said.

The operation is to be handled by Deutsche Bank Securities, a unit of the big German bank.