PARIS - An agreement between Paris and Beijing for the building in China of two third-generation EPR nuclear reactors was to be signed by the end of July, a source close to the deal said Thursday.

"A letter of intent should be signed on July 30" by French nuclear group Areva, electrical giant EDF and their Chinese partner China Guangdong Nuclear Power Corp (CGNPC), the source said.

Le Figaro newspaper reported that the China-France contract is worth up to euro6 billion (US$8.25 billion).

French Economy Minister Christine Lagarde would visit China for the ceremony, he added.

According to the AFP report, Areva and EDF refused to comment.

The value of the contract is not known, but the cost of the first EPR (European Pressurised water Reactor) built by Areva in Finland was put at some three billion euros.

In early February the two public groups were "in advanced discussions" on the project.

According to another source at the time the sticking point was how the reactors would be delivered, with Areva holding out for a turnkey project while the Chinese side wanted Areva simply to supply the goods.

CGNPC, based in the southern province of Guangdong, is the historic partner of Areva and EDF in China. It runs the Daya Bay and Ling Ao power stations in the south, which the French companies helped to construct in the 1980s and 1990s.

The two third-generation reactors will boost CGNPC's output by 3,200 megawatts, the newspaper said. The deal must be ratified by French and Chinese authorities, and a French minister should be sent to China in the coming weeks, Le Figaro said.

On Tuesday, Westinghouse Electric Co -- Areva's main rival for the supply of nuclear reactors to China -- signed deals to build four nuclear power plants in China, an AP report said.

US, European and Russian suppliers of nuclear power technology have all been vying to land contracts in China, where as many as 32 nuclear plants are expected to be built by 2020 as it tries to meet surging power demands while cutting emissions and reducing reliance on imported oil. Both American and French politicians lobbied Beijing hard on behalf of their companies.