UPDATE 1-Cazenove, JPMorgan close to jv buyout terms-paper

* Report says two firms close to agreeing JV terms

* JV says neither party has expressed its intentions (Adds reaction)

LONDON, Sept 20 (Reuters) - Senior management at Cazenove and JPMorgan are thought to be close to agreeing a price for Cazenove's share of their J. P. Morgan Cazenove joint venture before the end of the year, the Independent on Sunday newspaper said.

Cazenove and JPMorgan Chase & Co (JPM.N) created the joint venture in 2005 and under the terms of the deal there are options for JPMorgan to buy or Cazenove to sell its interest in the joint venture in February 2010.

But sources close to Cazenove told the newspaper that both parties were keen to get a deal agreed earlier than the February deadline.

In response, J.P. Morgan Cazenove said both parties had a continuing dialogue regarding the future shareholding of their joint venture.

"Neither party has expressed its intentions as to whether or not it will exercise its call or put option," the statement said. "Any decisions about the future will be made in the best interests of shareholders, clients and staff."

The paper said Cazenove's chairman, David Mayhew, and Chief Executive Naguib Kheraj were holding talks with senior JPMorgan executives and it cited unnamed sources as saying that plans for the company could be unveiled as early as next month. (Reporting by Kate Holton; Editing by Greg Mahlich)