UPDATE 1-Citigroup confident in capital levels - source

(Changes source of story)

NEW YORK, March 4 (Reuters) - Citigroup Inc (C.N) is comfortable with its capital levels and is not seeking new funds from outside investors, a person briefed on the matter said on Tuesday.

Shares of the largest U.S. bank fell to a nine-year low earlier after Sameer al-Ansari, head of the Gulf investment agency Dubai International Capital, said Citigroup needs more funds, even after raising $30 billion from investors including Abu Dhabi, Kuwait, Singapore and Saudi Prince Alwaleed bin Talal.

"It's going to take more than that to rescue Citi," al-Ansari told a private equity conference.

Also weighing on the shares was a research note in which a Merrill Lynch & Co analyst slashed his earnings forecast for the bank, citing a possible $15 billion write-off this quarter related to mortgages.

Citigroup declined to comment.

In late-afternoon trading, Citigroup shares were down 90 cents, or 3.9 percent, to $22.19. They earlier fell as low as $21.23. (Reporting by Jonathan Stempel and Dan Wilchins; Editing by Tim Dobbyn and John Wallace)