A media report that a planned merger between European aerospace group EADS and British defense company BAE Systems was on the brink of collapse is "unfounded", a senior French government source said on Friday.

Both the French president's office and the prime minister's office said they had no comment on a report in the online edition of Germany's Der Spiegel news magazine, citing German government sources, saying the talks had practically collapsed.

(Reporting By Elizabeth Pineau; Writing by John Irish)