easyjet has walked away from talks to join a consortium that would have bid for Italian flag-carrier Alitalia.

The UK-based low-cost carrier has been in talks with Delta Air Lines and Italian railway company Ferrovie dello Stato Italiane about a possible deal to take-over the stricken carrier.

Alitalia went into administration in early 2017 after workers rejected a plan to cut jobs and salaries.

The decision followed a decade of poor financial performance and government bailouts at the state-owned airline.

Alitalia has limped on in recent years, supported up by the government, which has been looking for a buyer

The three parties had entered discussions in February about potentially forming a consortium, although easyjet warned at the time it was not certain whether a transaction for Alitalia would materialise.

The Italian government has set an end-of-March deadline for Delta and Ferrovie dello Stato Italiane to come up with a rescue plan for Alitalia.