NEW DELHI— Kingfisher Airlines Ltd. on Tuesday confirmed that it is in talks with Etihad Airways, among other investors, for a possible stake sale in the cash-strapped Indian carrier.

In a regulatory filing, Kingfisher added that "no agreement has been reached either with Etihad or any other airline and the matters are merely at negotiation stages."

Earlier in the day, a person familiar with the matter said Adu Dhabi-based Etihad is interested in the purchase of a stake in Kingfisher and the two companies are holding discussions.

Etihad is eyeing a minority stake in Kingfisher, this person said. A spokesman for Etihad declined to comment.

The Indian carrier has been grounded since October because of a strike by employees over unpaid wages. It also owes millions of dollars to fuel suppliers and airports. India's aviation regulator has suspended Kingfisher's license to fly.