Malaysian telecommunications conglomerate Axiata Group Bhd. is not revisiting a proposed merger with Norway-based Telenor ASA, The Malaysian Reserve reported, citing a source familiar with the matter.

The news comes less than a week after reports surfaced that Telenor and Khazanah Nasional Bhd. are in talks again about a potential transaction involving Axiata. The report said one of the scenarios being considered is Telenor buying part of the wealth fund's nearly 37% stake in Axiata.

In response to the media reports, the source said there are no new deal talks between the parties and all recent news of a possible merger are "unsubstantiated rumors."

Axiata and Telenor in 2019 called off discussions regarding a noncash combination of their Asian operations due to deal complexities.

The transaction would have merged the companies' telecom and infrastructure assets into a new entity to be owned 56.5% by Telenor and 43.5% by Axiata. The merged entity was envisioned to become the largest telco group in the emerging Asia-Pacific.