Between 10% and 25% of the oil company should be sold in an effort to ensure "better management of Norwegian oil and gas resources while optimising state revenue," Mr Stoltenberg said.
Under a proposal due to be presented to Parliament by the ruling Labour party on Friday, the Norwegian state would retain at least two-thirds of the oil company.
The government's privatisation plans are broadly supported by opposition parties so the proposal is expected to be approved.
Stock market entry
Statoil has an estimated value of 150bn Norwegian kroner ($18.4bn, 16.3bn euros).
Its shares would be listed on the Oslo Stock Exchange and on one international bourse during summer 2001, according to the government's proposal.
Some of the shares would be reserved for foreign partners.
"Expansion of the ownership will supply new expertise, new partners and new capital" the ministry of petroleum and energy said in a statement.
The French state-owned Gaz de France and Germany's Ruhrgas are likely contenders for these shares.
Gaz de France, which is also expected to be privatised in the near future, has declared an interest in a long-term partnership based on cross-ownership between the two energy companies.
Ruhrgas, one of Germany's largest companies, is one of Statoil's main customers.
Statoil believes one way to retain its custom is to enter into some form of a partnership.
Holding company
Under the government's proposal, Norway would also sell 20% of its state oil and gas holding company, State's Direct Financial Interests (SDFI).
This company controls 40% of Norway's oil and gas reserves and has an estimated market value of 200bn kroner.
SDFI's own estimate values the company at 660bn kroner before tax.
With a production output of about 3.2 million barrels per day, Norway is the second biggest exporter of oil after Saudi Arabia.