Macau casino magnate Stanley Ho is set to buy a stake of up to 10 percent in Star Cruises, which is to build a casino in Singapore with its partner Genting International.

The Singapore's Straits Times daily said Ho will be invited to buy up to 10 percent of Star, which describes itself as the world's third-largest cruise ship firm.

In turn, Star is negotiating for a sub-licence from Ho to build and operate a casino in Macau, the booming southern Chinese gambling enclave, the report said, citing financial executives close to the deal.

Both Star and Genting International are part of Malaysia's Genting Group, which also operates casinos.

Executives cited by the Straits Times said the transaction is to be announced this week. They said Ho will acquire an initial five percent of Star Cruises, with another five percent to follow in coming months.

Star Cruises requested a trading halt for its shares last Friday.

The Straits Times said the deal is part of a plan by Star Cruises and Genting International to raise funds for the contract they won last month to develop Singapore's second casino project.

Their plan calls for a US$3.38 billion development including a Universal Studios theme park and the world's largest oceanarium on Singapore's Sentosa island. The facility is to open by 2010.

Ho held a 40-year monopoly on casino gambling in the former Portuguese colony of Macau until 2001 when the enclave liberalised its casino ownership laws, attracting an influx of foreign investors and sharply boosting the overall business.