Germany's carmaker Daimler and its French rival Renault are in discussion for acquiring equity

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stakes in each other as part of a possible alliance that would go beyond their current talks on small cars, says a media report.

Attributing to people briefed on the plan, The Financial Times reported Daimler and Renault are discussing acquiring mutual equity stakes.

"The stakes to be bought or swapped were likely to be smaller than 10 per cent," the daily said.

According to the publication, if the talks are successful, the German and French carmakers would take stakes in each other as part of "a longer-term framework for co-operation," the report noted.

However, the report said that discussions have been long-running, and are still ongoing.

Daimler and Renault said in December that they were discussing a possible partnership on small and compact vehicles.

Both companies are in constant talks with their competitors about pooling costs and building scale for costly new technologies and cars. These have intensified during the industry's current deep recession.

Besides, the report also said the two companies were also discussing cooperation in light trucks.