The chief executive of British Energy has signalled that a deal with France's EDF could still be on, just days after a proposed takeover fell through due to cost factors.

Coming on the back of a new report from the UK nuclear power supplier which pointed to a 66% fall in profits over the past year, Bill Coley has stated that discussions regarding a takeover are still ongoing, though he stopped short of mentioning any likely bidders.

In addition, Mr Coley outlined his vision for the future of the UK nuclear sector, which British Energy - which is 35% owned by the government - is set to play a leading role in over the coming years.

"The role for nuclear new-build as an integral part of UK energy policy is now firmly established," he told the BBC.

"The expertise of our people, together with our sites, makes British Energy uniquely positioned to play a pivotal role in nuclear new build," he added.

EDF, meanwhile, has yet to rule itself out of another attempt to acquire British Energy and indeed has recently made a first move into the UK nuclear market through its partner Areva, which has been named as a preferred bidder for the decommissioning of old reactors at Sellafield.