Chrysler in cooperation talks with Fiat -newspaper

BERLIN, April 15 (Reuters) - Chrysler LLC [CBS.UL] is in talks with Italian carmaker Fiat (FIA.MI: Quote, Profile, Research, Stock Buzz) on a possible cooperation agreement for the production of Alfa Romeo cars in Chrysler's U.S. factories, a German newspaper reported.

In a report to appear on Wednesday, Handelsblatt newspaper said the talks between the two companies are advanced.

"Handelsblatt has learned Chrysler could produce the cars for Fiat subsidiary Alfa Romeo," the newspaper wrote in an excerpt on Tuesday. "Industry sources say the talks are moving forward."

In Italy, Fiat declined comment.

The newspaper quotes a Chrysler spokeswoman saying the report is speculation, but adds: "There could be other partnerships with other carmakers."

On Monday Chrysler and Nissan Motor Co Ltd (7201.T: Quote, Profile, Research, Stock Buzz) unveiled a production alliance on Monday that gives the U.S. automaker the small car it lacks and allows the Japanese company to stay in the competitive full-size U.S. pickup truck market.

Chrysler and Nissan built on a smaller agreement the companies announced in January, but executives from both companies said the new arrangement was purely a production deal and declined to say whether they plan further financial ties.

(additional reporting by Gianni Montani in Turin)