"The contract will not come into effect unless Areva agrees unequivocally to transfer this (nuclear fuel treatment) technology (to China)," the source said.

In November, Areva, the world's largest nuclear power plant company, announced a deal to supply two third-generation reactors to energy-hungry China as part of a package worth eight billion euros (11.9 billion dollars).

"It's a record. In the history of the civilian nuclear industry, there's never been a deal of this magnitude," Areva chief executive Anne Lauvergeon said at the time.

Areva also agreed to transfer third generation nuclear technology to China, Lauvergeon said, who emphasised the deals were the start of broader cooperation between the firms.

The informed source said Tuesday that Areva had highlighted its ability to treat and recycle spent nuclear fuel on an industrial scale when it was trying to make the sale to China and now Beijing was in turn taking up the opening.

The transfer of such technology could take a long time, perhaps as much as 15 years to bring to fruition, as was the case with another Areva built plant in Japan, the source said.

"Treatment of spent nuclear fuel is one of the most difficult and complicated processes," the source said, noting that as it could have both civilian and military applications, any transfer requires clearance by the government.

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