Trinity Mirror has confirmed it is in talks with Daily Mail & General Trust (DMGT) over taking a minority stake in a new local newspaper company.

The new company, with a working name of Local World, will be made up of the assets of DMGT's Northcliffe Media division – including titles such as the Leicester Mercury, Derby Telegraph and Nottingham Post – plus the 30 newspapers owned by Iliffe News and Media.

Trinity Mirror, which owns the Daily Record, is thinking of taking a 25% stake in the venture but has no plans to put any of its 130 regional and local papers, including the Paisley Daily Express and Stirling Observer, into the project.

In a statement, Trinity Mirror said: "No offer has been made and there is nothing further to report at this stage."

DMGT and Iliffe owner Yattendon Group are also expected to take a 25% stake.

The consortium leading the plan is reportedly led by former Mirror Group chief executive David Montgomery.

Mr Montgomery, most recently head of European publishing group Mecom, is thought to have backing from private equity firms including Odey Asset Management.

The deal is expected to value Northcliffe at £110m and Iliffe at just below £20m with payments to be made in a mix of cash and equity.