Japan's Mitsubishi Motors Corp denied a newspaper report that it was in talks to sell a 30-50 percent stake to European car maker Peugeot-Citroen.

The Nikkei business daily reported on Thursday the two companies are in the final stages of negotiations, with Mitsubishi likely to issue 200-300 billion yen in new shares to Peugeot.

Mitsubishi Motors spokesman Tetsuji Inoue said the report was not true.