Citing sources close to the situation, the Shanghai Securities News said Disney has completed talks with the Shanghai government on plans to build a Disneyland theme park in the city.

According to SSN, senior executives of US-based Disney came to Shanghai in December 2008 to discuss related details.

Shanghai Lujiazui Finance & Trade Zone Development Company and Shanghai Waigaoqiao Free Trade Zone Development Company would participate in the development of Disneyland, according to the sources.

Despite this, however, China’s state-run Xinhua news agency subsequently said the reports were unfounded.

Speaking to Xinhua, Disney’s spokesperson in China Tiffany Huang was reported to have said: "The report is not true and no agreement has been reached."

Rumours surrounding the new park surfaced in 2002, and many industry observers said the talks would lead to Shanghai Disneyland opening by 2013.