Dubai World, in the midst of talks to restructure $24.8 billion in debt, has offered to repay creditors 30 per cent over five years and the remainder in eight years, a newspaper quoted a government official as saying on Wednesday.

Arabic language daily al Khaleej did not identify the government official.

Dubai World is in talks with a core panel of seven banks on a debt plan, which offers the bank lenders full repayment in two tranches over five and eight years at 1 per cent interest and 1 per cent payment-in-kind.

A Dubai World spokesman declined to comment on the newspaper report.

Dubai shocked global markets last year when it unveiled plans to delay repaying $26 billion in debt as it restructured Dubai World. It unveiled a $9.5 billion rescue plan for the firm and property unit Nakheel in March.

Last week, Dubai repaid a $980 million Islamic bond issued by developer Nakheel.-Reuters