British yellow pages publisher Yell Group is set to give its lenders more time to agree to terms on a restructuring of its 2.6 billion pounds of debt, the Financial Times reported on Thursday.

A deadline for the talks, which expired on Wednesday evening, could be extended as far as the end of this week as two camps of lenders - a group of institutional investors and Yell's lending banks - try to reach a compromise, according to the FT.

The newspaper cited people familiar with the situation as saying that although meetings between the two camps had been held, no agreement was reached.

The extension comes as the directories business seeks approval for additional leeway under its banking covenants, the article said.

(Reporting by Stephen Mangan; Editing by Richard Chang)