Ten Network Holdings has played down speculation that it is close to sealing a deal that would see pay TV player Foxtel take a 14.9 per cent stake in the troubled broadcaster.

The Australian Financial Review reported today that Foxtel was close to agreeing a deal with Ten that would see it inject about $85 million into the free-to-air-broadcaster.

But Ten says that while it is in talks with Foxtel about the terms on which it may potentially invest, the discussions may not result in a deal.

Ten says it will update the stock market when necessary and until then urges caution in dealing in its shares based on media speculation.