UPDATE 1-Saab, BMW in talks to develop new 9-2 model-report

(Adds BMW, Saab comment)

STOCKHOLM, June 11 (Reuters) - The chairman of Saab Automobile is in discussions with BMW (BMWG.DE) in Germany to use its engines and transmissions in a new version of the 9-2 model, a Swedish daily reported, quoting an unnamed source.

Victor Muller, chief executive of Spyker SPYKR.AS and Saab chairman, has said he is deep in talks with potential partners about procuring a platform for the '92', a revival of a tear-drop-shaped Saab model from 60 years ago. [ID:nLDE6510OL]

Dagens Industri reported on Friday that there were also plans for BMW to supply a diesel engine for Saab's city jeep 9-4X, which will be launched in the European market at the start of 2011.

Contact has been made between Saab and BMW over the 9-2, which could be built on BMW's Mini platform, the paper reported. A meeting is scheduled to take place at the end of June.

Spyker declined to comment and BMW said it would not comment specifically on the report.

"We are in talks with several interested parties who have interest in our technology," a BMW spokesman said. "There are no contracts with Saab at the moment."

A spokesman at Saab said the carmaker was looking for "possible partners" but also declined to comment on the report.

"We are concentrating on the 9-5 and the 9-4X," Eric Geers said. "A smaller Saab below the 9-3 is not in our business plan though it would be on our wish list."

Saab was rescued earlier this year by Dutch luxury carmaker Spyker, which sealed a $400 million deal to buy the loss-making carmaker from General Motors [GM.UL].

Muller is hoping to restore the fortunes of the iconic Swedish brand, aiming to more than double yearly sales to 85,000 by 2012. (Editing by Simon Jessop)