DUBLIN - Canadian Imperial Bank of Commerce is interested in buying Allied Irish Banks' minority stake in U.S. lender M&T Bank Corp, the Irish Independent reported on Thursday.

Allied Irish Banks declined to comment. A spokesman for CIBC didn't immediately answer calls for comment.

Allied Irish said in August it had received an approach from a third party for a minority stake and two sources familiar with the matter said the interest came from Canada.

After Royal Bank of Canada, Canada's largest bank, denied it was the suitor, No. 5 Canadian Imperial Bank of Commerce emerged as one of the most likely candidates for a potential deal.

CIBC then said it did not comment on rumours or market speculation.

The Irish Independent, quoting unnamed sources, said Allied Irish continued to be circled by CIBC.

However, it is believed that CIBC, which first emerged as an interested party last August, is more interested in AIB's 24 percent stake in U.S. bank M&T than in taking a strategic holding in the group itself, the paper added. (Reporting by Andras Gergely; Editing by David Holmes)