(Reuters) - Japan Display Inc is in advanced talks to receive a bailout amount of about 75 billion yen ($704.49 million) from Innovation Network Corp of Japan (INCJ), a government-backed fund and the display maker's largest shareholder, the Wall Street Journal reported on Thursday.

The two companies are looking at options including the issuance of subordinated bonds by Japan Display to INCJ, the Journal reported, citing people with knowledge of the matter.

INCJ owns a 35.58 percent stake in Japan Display, according to Thomson Reuters data.

Japan Display's banks also are considering additional support for the company, the Journal reported. No final decision has been made yet, according to the report.

INCJ was not immediately available for comment and Japan Display could not be immediately reached.

Japan Display said on Wednesday it was slashing 30 percent of its workforce, or 4,700 jobs, to improve profitability but added that concerns about its cash position have eased as it is seeing strong demand for its screens from Chinese smartphone makers.

The firm faced a funding crunch earlier this year and took out short-term loans from lenders due to slower iPhones-related demand from Apple Inc, whose products account for more than half of Japan Display's sales.

Japan Display was formed in 2012 by combining the display units of Hitachi Ltd , Sony Corp and Toshiba Corp.

(Reporting by Gaurika Juneja; Editing by Amrutha Gayathri)