BMW has not yet decided who will provide diesel engines for the next generation Mini, the automaker told Reuters.

It was reacting to a report in industry newspaper Automobilwoche that PSA Peugeot Citroen had edged out current supplier Toyota to supply diesels for the next series of Mini coming to the market in 2007, the news agency noted.

"No decision has been made yet. We are keeping all options open," a BMW spokesman told Reuters.

The news agency said Automobilwoche quoted BMW management as saying that PSA's diesel engines were chosen partly because of their lower price and higher engine power.