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China's fourth-largest car maker Chery Automobile said on Wednesday a joint venture with Chrysler, its partner in a production alliance for the global market, remains an option, but it ruled out any major moves in the near term.

In July 2007, Chery finalised a deal with the number-three US automaker to make compact cars under the Chrysler badge for sale in the United States and other markets.

The Shanghai Securities News said on Wednesday that the two had been in talks to set up a full-fledged joint venture in Chery's home base in the eastern Chinese province of Anhui and could reach an agreement in the near term.

"A joint venture with Chrysler was and still is an option, but I am not expecting any big moves of any sort in the near term," a Chery spokesman said.

A Chrysler spokesman said the two companies were moving forward with their plan to export vehicles from China to international markets, but declined to comment on the newspaper report on a manufacturing venture.

The two aim to begin exporting China-made compact cars to North America and Latin America by 2009.

The Chrysler spokesman said the companies were eager to begin exporting small cars from China as soon as possible but would not do so until they were 100 percent convinced that the models would meet global standards.

Chery, which already exports cars to more than 50 countries, mostly in the developing world, is among a small club of ambitious Chinese players hoping to emulate the global success of companies such as Toyota Motor .

It aims to generate 40 percent of its sales overseas by 2010, when it targets annual sales of 1 million cars, compared with 25 percent in 2007.