Sueddeutsche Zeitung, citing unnamed sources close to Airbus, said the talks could lead the state prosecutor's office in Munich to drop its inquiries into the 2003 sale of 15 planes to Austria for about 1.7 billion euros.

Airbus declined to comment on the report on Sunday, while the Munich prosecutor's office was not available to comment.

The newspaper report followed an Airbus statement on Saturday in which the company said it was talking to Munich prosecutors about "the potential termination of the investigation".

The company had also announced on Saturday that it had been ordered to pay 104 million euros in fines over a missile sale to Taiwan in 1992.

($1 = 0.8201 euros)

(Reporting by Douglas Busvine; Editing by David Goodman)