TOKYO (Reuters) - Tokyo Electric Power Co <9501.T> will be advised to cut 7,400 jobs, or about 14 percent of its full-time employees, by March 2014 as part of a plan to help it pay compensation for the Fukushima Daiichi nuclear disaster, the Yomiuri newspaper said on Wednesday.

A government-appointed panel looking into the finances of the utility, known as Tepco, is also expected to call for it to raise 600 billion yen ($7.8 billion) in asset sales and cut pension payments among other measures to help it finance the aftermath of the world's worst nuclear disaster in 25 years, the daily reported.

It also wants government steps to encourage banks to continue lending to Tepco, the report said.

The restructuring plan is due to be unveiled on October 3, the newspaper said, without citing the source of the information.

Tepco will then draw up a business plan later in October and seek government approval to receive funding -- which some experts have said could be 2 to 8 trillion yen ($26-104 billion) -- financed by contributions from nuclear power operators and taxpayers' money. ($1 = 76.655 Japanese Yen)

(Reporting by James Topham; Editing by Edwina Gibbs and Michael Watson)