"There is no reason for such speculation as presented there and the federal government doesn't engage in such speculation," Steffen Seibert said during a regular government news conference.

Citing government sources, Focus magazine reported on Friday that Merkel had ruled out assistance for the lender, which is fighting a $14 billion demand from the U.S. Department of Justice to settle claims it missold mortgage-backed securities, a shock bill that raises questions about its future.

(Writing by Joseph Nasr; Editing by Michelle Martin)