UPDATE 1-Australia's Centro says still waiting on banks

(Adds details, background)

SYDNEY, Feb 13 (Reuters) - Centro Properties Group (CNP.AX), which owns 700 U.S. shopping malls, said on Wednesday it had not yet reached an agreement on a debt extension with its creditor banks, denying a newspaper report.

Centro, one of Australia's biggest casualties of the global credit crunch, got into trouble when it borrowed heavily using short-term debt to finance long-term investments.

Centro said in December that it and its affiliates were struggling to refinance some A$3.9 billion ($3.5 billion) of debt after borrowing to fund a rapid expansion, triggering an 80 percent collapse in its share price.

"There has been no agreement reached at this point with the U.S. and Australian banks. Negotiations are continuing on the terms and duration of any extension," a Centro spokesman said.

He said the company was hopeful of reaching an agreement by a Friday 4 p.m. (0500 GMT) deadline.

The Sydney Morning Herald paper reported on Wednesday that the banks had given Centro an extra two months to refinance its debt and help avoid a firesale of assets.

The unsourced report said Centro had agreed in principal with its main backers, Australia and New Zealand Banking Group Ltd (ANZ.AX), Commonwealth Bank of Australia Ltd (CBA.AX) and National Australia Bank Ltd (NAB.AX).

Centro also has U.S. creditors including JP Morgan (JPM.N) and private noteholders, and the company's new chief executive Glenn Rufrano has been travelling between the U.S. and Australia to meet with all the creditors.

About two-thirds of Centro's shopping centres are in the United States, with the remainder in Australia and New Zealand, held through a complex network of managed funds.

It opened its books to interested parties in late January and said it had significant interest in some assets, including the Centro Australia Wholesale Fund and the Centro America Fund. ($1=A$1.11) (Reporting by Victoria Thieberger, editing by James Thornhill)