The iconic London department store Harrods is in talks with Shanghai's municipal government about opening its first store outside of the UK.

China Daily has reported that Harrods is keen to open a new department store in one of the buildings where British banks and merchant houses once traded.

The newspaper cited an executive from Harrods as saying no plans had been confirmed to open a Shanghai store, and it could take a long time before any lease agreement can be concluded. It gave no further details.

Possible locations are limited, with few buildings large enough to house Harrods, which operates one of the largest department stores in the UK.