Jet Airways and Etihad Airways have denied reports that the two carriers had called off their talks over a stake sale deal due to differences over the issue of protection to investment.

Etihad has been in stake sale deal talks with Jet since August last year. The Gulf carrier has reportedly plans to buy a 24 per cent stake in the Indian carrier, but differences over the bilateral investment promotion & protection agreement (BIPA) has so far been the biggest hurdle in the conclusion of the talks.

Etihad is reportedly also seeking an option to increase its stake to 49 per cent. The Gulf carrier is also seeking representation on Jet Airways' board, after the deal.

On Monday, some media reports claimed that the talks over the deal had been called off due to differences between the two sides.

Jet Airways turned down the reports saying "The information is not correct and at the same time is merely speculative."

UAE-based Etihad also claimed that the two sides were still pursuing talks over the potential stake sale deal.

Sources suggest Etihad is ready to India's No. 2 airline up to $330 million for 24 per cent stake.