Deutsche Telekom AG is mulling over submitting a bid for Sprint Nextel, the third largest mobile phone operator in US.

As per reports of British newspaper "The Sunday Telegraph", Deutsche Telekom had hired Deutsche Bank to advise the company over a possible multi-billion-dollar bid.

Deutsche Telekom, which owns T-Mobile, will most probably have to go to shareholders and the German government for cash to fund the possible bid. The German government holds a 32 per cent stake in Deutsche Telekom.

But, Andreas Leigers, spokesman for Deutsche Telekom, said, "It's our policy not to comment on market rumors."

Michael Lermer, spokesman for Deutsche Bank declined to comment over the issue.