Fast Retailing, which operates the Uniqlo chain of casual clothing stores, is in talks with retailer Daiei to launch a new casual apparel brand, the Nihon Keizai Shimbun said.

The planned clothing brand - which will 30 per cent to 50 per cent cheaper than the Uniqlo line - will be sold through larger Daiei stores, reports said.

Fast Retailing presently has four shops within Daiei's stores.