Diageo has denied reports that it has been in discussion with the Irish government about moving the drinks giant's headquarters from London to Ireland.

Speaking to just-drinks today a spokesman for the company said: "It's untrue."

The Irish Sunday Independent had reported that Diageo was "seriously considering" moving the company to Ireland to take advantage of low corporation tax rates.

The Sunday Independent said it had learned that private talks between newly appointed Tanaiste Mary Coughlan and senior Diageo management took place early Friday morning, shortly before their press conference to announce the overhaul Diageo's brewing facilities in the country.

However, Diageo's spokesman told just-drinks that the meeting had been a briefing about Diageo's plans to invest millions of pounds into building a new brewery in Ireland.

He added that no discussions about an HQ move had taken place.

Asked if the move was something Diageo would consider in the future, the spokesman said that as a multinational country Diageo was always monitoring the country's it operated in and it was Diageo's hope that the UK government did not make the UK a less competitive place to do business.

The Sunday Independent reported such a move by Diageo would save the company EUR250m (US$386.5m) in tax a year.