Deutsche Telekom AG, the owner of T-Mobile USA, is considering buying mobile-phone firm Sprint Nextel, according German magazine Der Spiegel.

The magazine noted Sprint Nextel's share price has slumped and the strong euro makes it a low price transaction that would help the European company to compete with the leading American telecom firms.

The report didn't specify how the magazine got the information however analysts from Merrill Lynch also have recently speculated that DT could aim for a purchase.

Sprint Nextel ranks number three among the four largest mobile-phone service providers with 53.8 million subscribers while T-Mobile is placed in fourth place with 29.8 million. The joint company would make it the largest cell phone company in the nation.

Leading the market are AT&T Wireless' with 70.1 million subscribers and Verizon 64.0 million.

Shares of Sprint Nextel traded at $7.81 on Friday in after hours electronic trading after falling 1.01 percent n the New York Stock Exchange.

Shares of Sprint Nextel fell 13 cents, or 1.62 percent to $7.89 in afterhours electronic trading.