A German publication reported Tuesday that talks about a strategic partnership between FedEx and the troubled DHL business in the United States fell apart.

The report in Handelsblatt, a business magazine based in Germany, cited a report by the ING Group investment firm that said talks between DHL parent Deutsche Post and FedEx "have fizzled out."

News reports in Germany have said since late last year that Deutsche Post was in talks with FedEx about cooperation in the United States and perhaps on a large scale. Deutsche Post's troubled DHL express business has been losing enormous amounts of money in the United States and several investment analysts have projected more than $900 million in losses in the United States this year and called on Deutsche Post to withdraw from domestic service.

DHL and FedEx officials have denied the reports of talks.