China's fourth largest carrier Hainan Airlines is negotiating on a plan of purchasing the stake in a French airline Aigle Azur, a French newspaper reported, citing an anonymous insider.

The Haikou-based carrier is reported to buy a 40-49 percent stake in Aigle Azur. The French airline is privately held by a merchant named Arezki Idjeroudiene and mainly operates services from France to Portugal and North Africa.

Hainan Airlines and Aigle Azur will launch new services between France and China once the deal can be finished, according to the report.

Aigle Azur officials could not immediately be reached for comment.