"Rio Tinto notes continued media speculation in connection with a possible transaction with Chinalco and confirms the parties are in negotiations, which may or may not lead to any agreement being reached," Rio Tinto said in a statement.

Chinese state-run newspaper Economic Observer and other outlets reported earlier this week that Aluminum Corp of China - also known as Chinalco - was in the final stages of talks to make a multibillion-dollar investment in Rio Tinto, with a deal expected some time this week.

The Wall Street Journal and Financial Times reported Wednesday that a deal worth about US$19 billion had been reached.

Earlier this month Rio Tinto said it was negotiating with Chinalco about the Chinese company buying minority stakes in some of its operations - a move that could provide a big capital injection as the mining giant struggles to pay down its debts.

Chinalco already has a 12 per cent stake in Rio Tinto and the deal under discussion could significantly raise Chinalco's share of the Anglo-Australian miner.

United States-traded shares of Rio Tinto were halted on the New York Stock Exchange at US$112.80, after climbing US$5.43, or 5.1 per cent earlier in the session.

- AP