The Department of Finance has again insisted that Ireland is not involved in talks on an application for emergency funding from the European Union.

The BBC, Reuters news agency and international finance website have reported that talks on an EU bailout have taken place.

One report on Bloomberg claims European central banks put pressure on the Irish Central Bank to seek a bailout during a midday conference call.

Central Bank sources in Ireland declined to comment on the claims.

The BBC and Reuters claimed Ireland was seeking a bailout in the region of €45bn to €90bn.

A Department of Finance spokesman said Ireland is fully funded until the middle of next year.

The head of the International Monetary Fund, Dominique Strauss Kahn, has said Ireland can manage its economy on its own.

Speaking on the sidelines of an Asia Pacific summit in Japan, Mr Strauss Kahn said Ireland's difficulties had been principally caused by one bank and were very different from those of Greece whose economy faced deep-seated problems.

His comments came after Taoiseach Brian Cowen and the European Commission denied a report that preparations were under way to apply for emergency funding from the EU.

Earlier, a Government spokesperson reiterated that no EU bailout talks are taking place, despite reports that preliminary talks about such a bailout are ongoing.

RTÉ News reported last night that some talks have taken place about how a bailout might happen in a theoretical worst case scenario.