Talks between United Airlines and Continental on an alliance that was ruled out just a month ago appear to be back on, although plans are said to fall short of a full merger.

United is already discussing a tie-up with US Airways but is not expected to pursue both deals.

Continental is believed to be still in discussions about an alliance with AMR's American Airlines and British Airways.

United parent company UAL has a board meeting today that is expected to address the issue, but talks are said to be in their infancy.

United had been close to a deal with Continental until it said last month that it would not seek a merger. Continental left the door open to an alliance with another carrier.

"As we've said over the last few weeks, we are examining our alliance relationships as we think it's important that we be a major player in one of the three major global airlines alliances," a Continental spokeswoman said.

United would not comment. Some analysts are sceptical about a United-Continental deal, saying that the disruption caused would not be worth the limited benefit on cost and capacity issues for the two airlines.