Thai Airways is reportedly in talks with Air Asia to buy a 20 percent stake in the budget carrier.

Thai Airways International (THAI) chief Charamporn Jotikasthira would meet Thai AirAsia boss Tassapon Bijleveld next week to pursue the deal, the Bangkok Post reported.

The deal talk follows a move made by Thailand's Deputy Prime Minister Somkid Jatusripitak, who said THAI's strategic stake in Thai AirAsia will help the rivals work together in creating synergies.

Somkid said this could help the companies expand their routes to secondary cities in Cambodia, Laos and Myanmar and make Thailand a regional tourism hub, the report said.

Tassapon, who heads Asia Aviation Plc that owns Thai AirAsia, said he is meeting top officials of THAI.

"I plan to discuss the idea with Khun Charamporn before I can tell you more details," Tassapon told the Bangkok Post.