Talking to the BBC, Cameron said that the shares will be offered to small investors at below-market prices as part of the £9bn share sale announced in the Budget last month.
Cameron said that the sale would "help us recover billions more to pay down the national debt".
In March, George Osborne announced that the government had sold another £500m of Lloyds Banking Group shares, taking the total amount of money raised through the trading plan launched in December 2014 to over £1bn.
The sales brought the total amount recovered for the taxpayer from Lloyds to approximately £8.5bn, reducing the government’s stake in the bank has from around 40% in 2009 to below 23%.
