French President Nicolas Sarkozy plans to push for an alliance between Gaz de France and its Algerian counterpart Sonatrach when he visits Algiers in July, the Wall Street Journal reported.
Sarkozy "remains keen on the idea", the newspaper quoted his spokesman as saying.
France's previous government planned a merger of GDF with peer Suez. The Sarkozy administration is in the process of reviewing that proposal.
Finance Minister Christine Lagarde said yesterday that the government has "no set timetable" for reaching a decision and that a "whole series" of different scenarios are possible.