Etihad Airways is closing in on a commitment to invest €300 million ($413 million) in Alitalia, it has been reported.
Bloomberg, citing sources familiar with the plan, reports that talks are at an advanced stage.
The struggling Italian carrier has been working to negotiate a €75 million deal with Poste Italiane which would allow it to reach a €300 million capital-increase target for which the deadline was extended from 10 to 20 December.
Abu Dhabi-based Etihad is pursuing a strategy of equity alliances, and has taken stakes in Aer Lingus, Air Berlin, Air Seychelles, Air Serbia, Darwin Airline, Jet Airways and Virgin Australia.
Neither Etihad nor Alitalia responded immediately to requests for comment.