The German group Deutsche Telekom could submit a bid for Sprint Nextel, the third largest US mobile phone operator, British newspaper The Sunday Telegraph said.

Deutsche Telekom has called in advisers to study a possible multi-billion-dollar bid and could make the offer within weeks, the broadsheet said, citing sources.

The report comes after Deutsche Telekom’s T-Mobile UK business announced a proposed tie-up with France Telecom’s Orange UK arm, which would create the biggest provider in the British mobile phone market.

Sprint has a market valuation of 10.6 billion dollars, the newspaper said.

Deutsche Telekom would probably need to call on a cash injection from shareholders, including the German government, which holds a 32-percent stake, to fund an acquisition of Sprint, said the weekly.

Deutsche Telekom, Sprint and Deutsche Bank all refused to comment, The Sunday Telegraph said.

Via Yahoo