Lufthansa and Turkish Airlines are in talks to each take share stakes in the other, Financial Times Deutschland reported on Tuesday, quoting sources close to the German carrier.
A Lufthansa spokesowman declined to comment on the information. The day before, the German group had rejected rumours of a possible merger between the two as "pure speculation."
Lufthansa and Turkish Airlines are both members of the Star Alliance cooperation network and jointly operate Sun Express, which serves routes between Germany and Turkey.
FT Deutschland said the two partners are eyeing other joint ventures and partnerships as well.