H&M, Europe's biggest fashion chain, is in talks to buy Portugal's largest clothing chain, Macmoda, according to local media reports. 

In an interview citing unnamed sources, weekly newspaper Expresso said the Swedish giant believes the purchase would allow it to increase its presence more effectively in the Portugese market.

The sources added that the deal would be worth in the region of €70m.

Macmoda has 35 retail outlets and is worth an estimated $85.6m.

H&M presently operates five outlets in Portugal, and recently announced plans to increase this to 50 in the next 20 years.