British Airways owner IAG has emerged as the preferred bidder to take over bankrupt Austrian airline Niki, German news agency DPA reported Thursday. "In the search for a solution for the insolvent Air Berlin subsidiary, Niki, everything is pointing to a sale to British Airways parent IAG," DPA wrote, without revealing its sources.

Niki's insolvency administrator Lucas Floether earlier announced that creditors had agreed to begin final talks with a chosen bidder.

He did not identify the bidder, but IAG - which also owns Spanish carrier Iberia - was widely reported to be one of four parties in the running to snap up all or parts of the holiday carrier. Floether has previously said he wanted a deal to be clinched before the end of the month given Niki's urgent need for fresh funding.

IAG declined to comment when contacted by AFP. Niki, the Austrian unit of failed Air Berlin, was forced to stop flying on December 14 after Lufthansa dropped plans to buy it because of EU competition concerns.

One of the four bidders for Niki, Austrian former Formula One champion Niki Lauda, told reporters his bid to re-acquire the airline he founded in 2003 had failed.

Copyright Agence France-Presse, 2017