TOKYO: The president of Mitsubishi Motors has not ruled out a future capital tie-up with France's Peugeot, reports said Sunday.

The two companies announced last week that they had scrapped talks on an ambitious capital tie-up that would have created the world's sixth-largest auto alliance, after reports of financial discord.

The announcement came after PSA Peugeot chief Philippe Varin and Mitsubishi Motors president Osamu Masuko met at the Geneva Motor Show.

On his return, however, the president of the debt-laden Japanese maker hinted they may try again, the Nikkei economic daily and other media said.

"We will not exclude any possibility in the future" if the two firms keep expanding their current alliance, Masuko reportedly said at Narita airport Saturday when asked about a capital alliance.

The two companies said on Wednesday that a tie-up "was not appropriate in the current circumstances."

Despite the breakdown of the talks, Peugeot and Mitsubishi, Japan's fourth-biggest automaker and producer of the i-MiEV electric city car, pledged to "broaden" their current cooperation.

They have agreed to launch the i-MiEV under the Peugeot brand in Europe this year and are also building a joint sports utility vehicle plant in Russia.

News reports in December has said Peugeot was planning to buy a 30 to 50 percent stake in Mitsubishi Motors.