UPDATE 1-Publicis expects strong sales growth in 2011

* CEO Levy "rather reassured" about 2010

* Seen progressive improvement in business so far this year

(Adds CEO comments, detail, background)

By Cyril Altmeyer

PARIS, March 30 (Reuters) - French advertising group Publicis (PUBP.PA) forecast "strong growth" in both sales and the broader market next year after seeing a progressive improvement in its business so far this year.

The world's third-largest ad group by revenue, which competes with U.S. group Omnicom (OMC.N) and Britain's WPP (WPP.L), is also "rather reassured" about 2010 and still expects to outperform its rivals, Chief Executive Maurice Levy said. Publicis predicted last month that the group would return to organic revenue growth this year after a 6.5 percent drop in 2009 and that its operating margin would stabilise. [ID:nLDE61E0V8]

"We think we will have strong growth in 2011," Levy said on Tuesday at a breakfast organised by French fincancial journalists association Ajef.

The year "2011 looks like being the year when things get going again", Levy added.

Publicis' ZenithOptimedia unit will reveal a small improvement in the market when it gives fresh forecasts next month, Levy said, although it was not yet possible to hope for a "boom" in growth.

In December, ZenithOptimedia predicted the global advertising market would grow 0.9 percent in 2010 after a 10.2 percent decline last year.

"In 2010, we will exit this negative period that we have known since the last quarter of 2008," Levy added, reaffirming that he saw a "slight" improvement in the market.

Shares in Publicis were little changed at 31.95 euros by 0945 GMT, in line with the French benchmark CAC 40 index .FCHI. (Editing by Simon Jessop)