Japanese business daily Nihon Keizai Shimbun reported on Saturday that, under a comprehensive tie-up, the two companies will cooperate in research and development for next-generation satellites and rockets as well as join efforts in passenger aircraft maintenance and design and other areas. Broad cooperation would help Mitsubishi Heavy, squeezed by stagnant sales and heavy debts, to gain a strong footing in the aerospace industry, which the major heavy machinery maker expects to pull it out of a quagmire of negative earnings, analysts said.

``We are in talks with Boeing on the possibility of cooperating in the broad aerospace business,'' a Mitsubishi spokesman said. He declined to comment further. Analysts also said a tie-up with Boeing would mean Mitsubishi could have only limited involvement in producing the Airbus A3XX superjumbo jet.