The government would not give its support to any attempt made by Centrica to merge with British Energy, it has been reported.

Just this week, the owner of British Gas hinted that it is looking into the possibility of merging with the nuclear provider should the proposed takeover by French utilities group EDF fall through completely.

Also, Centrica may consider signing long-term power supply contracts with British Energy and investing heavily in the forthcoming next generation of nuclear power "if all parties are fully supportive".

However, given that the government still owns a 35% stake in British Energy, any merger would require an official green light, something which looks unlikely to be granted given the detrimental effects this might have on competition within the UK energy market.

"It's not receiving the support of this party," one senior government official told the Financial Times.

"British Energy needs more [new nuclear] expertise, experience and knowledge technologies - Centrica's not going to provide that."