Fiat is discussing technical cooperation with China's Guangzhou Automobile Industry Group.

"We have discussed technical cooperation with Guangzhou Automobile," Paolo Arpellino, Fiat's chief of China operations, said, according to China Information Daily.

Guangzhou would be a third partner for Fiat in China.

Fiat's current deal to set up a car manufacturing venture in the country with Chery Automobile, China's fourth-largest car maker, continued satisfactorily, Arpellino said, adding that Fiat was open to other deals in China.

"We are always open to other partnerships and exploring opportunities under any possible form in a market as important as China," he said.

The report noted that Fiat has made little headway in China, where General Motors and Volkswagen have been reaping hefty profits.

Late last year, Fiat pulled out of a loss making car venture with Nanjing Automobile after the firm - which owns MG - merged with SAIC Motor.