NISSAN has denied reports that its Sunderland plant has won the contract to produce the new Almera.

The car maker dismissed an article in Japanese trade magazine Nihon Keizai Shimbun (NKS), which said production could begin on Wearside as early as next year.

The production location of the vehicle has been the subject of fierce debate, with Sunderland considered a strong contender.

But Nissan chief executive officer Carlos Ghosn has fuelled the speculation by indicating he would be opposed to giving the contract to Nissan Motor Manufacturing UK unless the Government committed the UK to joining the euro.

NKS said a formal announcement would be made on the contract award by March next year, with production potentially starting the following month.

But an industry expert cast doubt on that start date, saying it may not allow the company enough time to re-tool the production lines.

The Japanese business daily said a decision had been made to stop producing the current Almera due to sluggish sales, and that Nissan was considering replacing the car with a sport utility vehicle or a mid-size hatchback.

The Nissan spokesman rejected the claim that the Almera was under-performing, and said that for the year to date, it was the fastest-growing retail seller in its class in the UK. He said that it was the fastest-selling imported car in Russia.

In March, at the Geneva Motor Show, Nissan unveiled a new mini sports utility vehicle, the Qashqai, which has been tipped to replace the Almera.