Deutsche Bank has denied that it is seeking state aid from the German government amid a regulatory dispute with the US.

Germany's largest lender has been ordered to pay $14bn (£10.8bn) by the US Department of Justice to settle allegations it mis-sold mortgage securities in the lead up to the 2008 financial crisis.

The amount is close to Deutche's total market value of $16bn and has raised questions about its future.

German magazine Focus claimed over the weekend that Chancellor Angela Merkel had ruled out a government rescue for Deutsche during a confidential meeting with the bank's chief executive John Cryan.

Shares in the lender closed down 7.2% in European trading at €10.53 on 26 September — the lowest level in decades. Its market value has shrunk by half this year amid falling revenues and profits.

"This question [of a government rescue] is not on our agenda," Deutsche Bank chief spokesman Jorg Eigendorg was quoted as saying by the Financial Times newspaper.

"The question of a capital increase is currently not on the agenda, we comply with all regulatory requirements."

'No intent to settle'

Deutsche Bank reacted to the US penalty by saying that it had "no intent to settle these potential civil claims anywhere near the number cited".

"The bank expects that they will lead to an outcome similar to those of peer banks which have settled at materially lower amounts," a statement from the lender said on 15 September.

Deutsche Bank is one of the largest and most systemically important banks in Europe.

It has pursued a massive restructuring programme over the past year — including thousands of job cuts, cancelling dividend payments to shareholders and asset sales — in a bid to restore profitability.

A spokesman for Merkel said that there was no reason to speculate about German aid for Deutsche Bank.

"There is no reason for such speculation as presented there and the federal government doesn't engage in such speculation," Steffen Seibert was quoted as saying by Reuters.