The newspaper said Toyota Motor Corp, which has already supplied its hybrid system to domestic rival Nissan Motor Co. and Ford Motor Co (NYSE: F - news) . of the United States, is willing to launch talks soon with Porsche on the technology transfer.

Porsche AG apparently approached Toyota because it would be too costly to develop its own hybrid technology, the newspaper said.
No official was immediately available at Toyota's head office to confirm the report.

The German maker believes that a gasoline-based system befits the image of sportscars better than diesel engines, common in Europe as an answer to tightening emission controls, Asahi said.

A hybrid system combines an electric motor with a standard gasoline engine.

It provides relatively pollution-free and silent travel at low speeds in urban areas using the electric motor, with more power available on open roads from the standard engine.

In 1997, Toyota became the first carmaker in the world to mass-produce hybrid cars when it unveiled the Prius.

The company put on the market a modified Prius a year earlier which won the European car of the year award.

The second-generation Prius runs an average 35.5 kilometers per liter, according to Toyota.