Southeast Asia's largest budget carrier AirAsia said Friday it was close to a landmark deal that will see it partner with Japan's All Nippon Airways (ANA) to launch a new low-cost airline. "We are almost there," a senior AirAsia official told AFP.

The venture would be the carrier's first tie-up outside Southeast Asia, coming as it looks to expand and following its record order of 300 A320neo aircraft from Airbus last month.

An announcement on the airline, called AirAsia Japan, will be made next week, The Star newspaper reported Friday. It said the new airline will initially serve domestic markets and eventually the region.