RENAULT : Chrysler in unit sale talks, but Renault denies

PARIS/DETROIT (Reuters) - Chrysler is in talks to sell key assets to Renault-Nissan and auto supplier Magna according to people with knowledge of the discussions, though the French automaker on Wednesday denied such talks were under way.

Chrysler is under pressure to restructure after taking $4 billion in U.S. government loans.

Renault and Japan's Nissan, in which the French firm owns a stake, had some contact with Chrysler about a sale of all or parts of the U.S. automaker before the U.S. government stepped in to bail out Chrysler and General Motors Corp in December.

Talks gathered momentum in recent weeks and have included discussions about a deal to sell Chrysler's iconic Jeep brand, according to three people with knowledge of the talks.

Renault, headed by Carlos Ghosn, has been looking to clarify whether a deal to acquire assets from Chrysler would jeopardize the company's access to U.S. government funding, one of those familiar with the talks said.

However, a spokeswoman for the French automaker denied talks were under way.

"Renault denies it is holding any talks with Chrysler," said Renault's Frederique Le Greves.

Chrysler, the U.S. No.3 car maker, is owned by Cerberus Capital Management .

(Reporting by Poornima Gupta, Soyoung Kim and Kevin Krolicki in Detroit; Pascale Denis and Astrid Wendlandt in Paris; Editing by Jason Neely)