PARIS (Reuters) - German engineering giant Siemens (>> Siemens) is in advanced talks to combine its rail activities with France's Alstom (>> Alstom) in a deal that could be announced on Sept. 26, Le Monde reported on Friday.

Siemens would contribute rail assets valued at 7 billion euros (£6.19 billion) in return for 45-50 percent stake in Alstom under the deal being studied, the French daily said, citing unnamed sources. Siemens and Alstom both declined to comment.

The proposed tie-up is also being discussed between French President Emmanuel Macron's staff and their German counterparts in Angela Merkel's chancellery, Le Monde reported.

Siemens has held tie-up talks with both Alstom and Canada's Bombardier (>> Bombardier, Inc.) and had been expected to pick a preferred partner for detailed negotiations, a person familiar with the matter told Reuters on Thursday.

(Reporting by Laurence Frost; Editing by Luke Baker)

Stocks treated in this article : Alstom, Siemens, Bombardier, Inc.