Ghosn has proposed a closer tie-up between the two carmakers that would see the Japanese company buy the bulk of the French state's 15 percent Renault holding, people close to the matter told Reuters earlier.

"We totally deny that the French state is prepared to sell its shares to Nissan," the finance ministry official told Reuters.

The official, who declined to be named, added that the government was against the idea of a Dutch foundation for the merged group's future base.

"For the government, a Dutch foundation is not an option," the official said.

(Reporting by Laurence Frost, writing Michel Rose)

Stocks treated in this article : Renault, Nissan Motor Co Ltd