ADubai top government official asserted on Wednesday that Dubai World was in talks with its largest creditors and that the two parties have reached an agreement under which the government-owned company can renegotiate its debt repayment schedule, Reuters reported.

Last month, sources told Reuters that a deal had been reached with the creditor committee of banks including HSBC and Emirates NBD. In accordance with the new deal, Dubai World’s largest debt chunk - $25 billion – would be extended in exchange for several incentives.

Sheikh Ahmed bin Saeed al-Maktoum, chairman of Dubai's Supreme Fiscal Committee has ruled out any floatations of Dubai state-owned companies, including Emirates airline and air travel service provider Dnata. Such floatations are not being considered.