Reports have speculated that the struggling Japan Airlines Corp. and the Government-backed body responsible for the money-losing carrier's restructuring will be declining additional fund offers from Delta and American Airlines.

Instead, JAL and the funds providing body will only be seeking a bigger business cooperation with either Delta Air Lines Inc. or American Airlines, and the turn-around body will be picking one of the American operators as JAL's partner after February ends.

Both Delta, which is the world's biggest airline operator, and its rival American, are looking for a stake in Japan Airlines, with the aim to expand their services into the lucrative Asian markets.

$1 Billion have been offered to JAL by Delta and its SkyTeam partners, while American, on the other hand, has offered $1.4 Billion.

The state-backed Enterprise Turnaround Initiative Corp. of Japan is concerned that giving foreign carriers a stake in the troubled airline might end up further complicating the restructuring efforts.

Speculations are that JAL could file for bankruptcy as early as January 19.