(Correct paragraph 2 to clarify that 5% is not the entire stake that Nissan owns in Renault)

TOKYO (Reuters) - Nissan Motor CEO Ivan Espinosa said that the company plans to reduce the automaker's stake in French partner Renault, the Nikkei business newspaper reported on Monday.

Selling a 5% stake in Renault would raise about 100 billion yen ($640 million) at current share prices, funds Nissan plans to use for new vehicle development amid challenging business conditions, the report said.