Yuriy Semenov, the general construction designer at the Energiya space rocket corporation - the main operators of the space station - is quoted by Russia's Interfax newsagency as saying that an unnamed international firm is ready to provide financing for a further three years.

One year of operations aboard Mir costs $250m, he said.

Political decision 'in January'

The proposal has neither been confirmed nor denied by other officials with the Russian space agency.

In 1996 solar arrays were badly damaged by a collision

Mr Semenov said the Russian State Duma and Federation Council had both expressed their support for the plan and the necessary documents had been prepared for the Russian government to approve this method for the use of Mir. He said the political decisions would be made in January.

Cosmonauts Gennadiy Padalko and Sergey Avdeyev are currently aboard the space station orbiting 360 km above the Earth.

Mr Semonov said their on-going mission proved that the station and its equipment were reliable.

Tarnished reputation

The International Space Station will not be operational for some time

Mir has been in space for 12 years and has made over 70,000 orbits of the Earth. More than 60 astronauts and cosmonauts have worked on board coming from all over the world.

But in spite of its remarkable achievements the space station has acquired a tarnished reputation after a series of accidents.

The most serious was in June 1997 when a cargo ship rammed the station during a docking test. A number of solar panels were damaged and the crew had to rapidly evacuate one of the modules after it began to depressurise.

Its increasingly erratic record and the dire financial straits of the Russian space industry meant that last year a decision was made to end Mir's operations in June 1999, allowing it to fallout of orbit and into the Pacific.