The US technology stock exchange, the Nasdaq, wants to merge with one or several European stock exchanges, according to director Mr John Hilley. Mr Hilley told the German daily newspaper Sueddeutsche Zeitung that after the failure of the planned iX merger, which would have tied the Nasdaq to the London and Frankfurt exchanges, Nasdaq wanted to enter the market "at a higher and more mature level and is seeking a partner to do that".

He indicated that London was the Nasdaq's ideal target.

At the same time, the Euronext exchange - an alliance of the Paris, Amsterdam and Brussels exchanges - urged the London Stock Exchange (LSE) to consider enter talks with a view to a merger with it.

Mr Jean-Francois Theodore, chairman and chief executive of Euronext, said the LSE's potential for growth was "enormous" and added: "We are available and friendly."

UBS Warburg, the investment bank that is the LSE's biggest shareholder, supports a partnership with Euronext. The iX merger fell apart in mid-September, with the LSE saying it wanted to concentrate on its defence against a hostile Swedish takeover bid by the OM Gruppen, which failed last week.

Mr Hilley said he had waited until the OM Gruppen had given up in their bid for the LSE before announcing the move. "We can now focus our discussions and work towards the aim of a European stock exchange," he said.

He added that Nasdaq had been in talks with Europe's three main stock markets.

"Things will happen next year," he promised. "For the time being we're concentrating on London, for a very good reason: after the failure of the Frankfurt merger, I think it's not possible that London will want to tie in with a European stock market in the next few years."

A spokesman for the LSE refused to comment.