BayernLB to receive aid from Bavaria, Berlin-paper

FRANKFURT, Nov 27 (Reuters) - Struggling German bank BayernLB [BAYLB.UL] will receive financial aid from the federal government as well as the state of Bavaria to fund its cash needs, a German daily reported.

The state of Bavaria plans to inject 6-7 billion euros into BayernLB, securing two-thirds of the lenders capital needs, Muenchner Merkur said in a report to be published on Friday without citing sources.

The rest is expected to come from a 500 billion euro ($645 billion) fund set up by the federal government to stabilise the country's financial sector.

BayernLB, Germany's second-biggest landesbank or regional wholesale lender, and its owners were not immediately available for comment.

Sources close to the matter had said on Wednesday BayernLB needs around 10 billion euros in fresh capital -- more than the 6.4 billion euros first thought.

It was supposed to get 1 billion from its owners -- the state of Bavaria and local savings banks -- and the rest from a bank rescue fund cobbled together by the federal government.

The finance ministry in Berlin has objected to that plan because BayernLB's owners had previously pledged to put up more than the combined 1 billion euros in capital.

The paper quoted a member of the administrative board of the bank as saying that local savings banks could not contribute much more than the 300 million euros already promised because they needed the money themselves. (Reporting by Nicola Leske; Editing by Marguerita Choy)