Nissan has confirmed that it is in talks with fellow Japanese automaker Mitsubishi over a potential investment.

"Nissan and Mitsubishi are discussing various matters, including capital co-operation, but nothing has been decided," the automakers said in separate statements.

Mitsubishi, of course, recently admitted that it manipulated test data to alter the claimed fuel consumption figures of four of its mini-cars in Japan. Two of these, it produced for Nissan.

Reuters reports that the two manufacturers are in "advanced negotiations" over an agreement that would see Nissan invest around $1,8-billion to buy a third of Mitsubishi.

Under Japanese shareholding regulations, this would potentially represent a controlling stake.