ROME/PARIS, Oct 6 (Reuters) -

A framework agreement between France's Airbus and

Thales and Italy's Leonardo to create a

major new European satellite manufacturer will still require

some weeks, a source told Reuters on Monday.

The person familiar with the matter said key details

remain under discussion and that the boards of the three

companies are working to reach a unified position.

Talks between the aerospace companies encountered a

setback after existing partners Thales and Leonardo asked for

more time, French daily La Tribune reported.

Leonardo declined to comment. Thales did not immediately

reply to requests for comment.

A spokesperson for Airbus said: "Talks with our partners

continue and are confidential in nature; it is too early to

comment further".

Airbus and the other two companies, which own Airbus' main

competitor in satellite production, Thales Alenia Space, have

been in talks for months to create a new European venture to

compete more effectively with rivals from China and the U.S.,

including Elon Musk's SpaceX.

The deal aims at combining Thales Alenia Space and

Telespazio - two joint ventures between Leonardo and Thales -

Airbus Space Systems, Airbus Intelligence and the space

activities owned by Leonardo.

La Tribune reported that talks accelerated last week but hit

a last-minute obstacle over how workshare would be divided among

the three companies.