(AFP) - Negotiations on the purchase of French submarines for the Malaysian navy were still in progress, Defence Minister Najib Razak said today.

"It will be inappropriate for me to make any further comment. When the time comes, I will comment," he was quoted as saying by Bernama . Malaysia was also studying several other offers, Najib added.

He denied that the talks on the purchase of the submarines were tied to the issue of national carrier Malaysia Airlines System (MAS) being allowed to increase its flights to France.

Jane's Defence Weekly recently said France was close to signing a contract worth 1.2 billion euros (RM6.84 billion) to supply Malaysia with three diesel-electric submarines.

The specialist magazine said the deal had been held up by a demand from MAS to increase its flights between France and Malaysia from three to seven a week.

"It would appear that Kuala Lumpur considers traffic rights for MAS part of the offset package in the naval transaction," a source at French warship builder Direction des Constructions Navales (DCN) told the magazine.

New-generation submarines

Jane's Defence Weekly said DCN was ready to supply the Royal Malaysian Navy with two new-generation Scorpene submarines which would be built together with Spanish shipmaker Izar.

DCN was also to deliver the "Ouessant", a refurbished Agosta-class submarine, which France recently withdrew from active service.

It would serve as a training vessel for Malaysian submariners and would be based in Toulon in the south of France.

The contract would represent a breakthrough for France in a Malaysian market dominated up to now by German and British suppliers, according to Jane's.