MUNICH (Reuters) - Allianz and Amundi have paused discussions about combining their asset management businesses into a European investment giant that would manage nearly 2.8 trillion euros ($3 trillion) in assets, a source close to Allianz said.

Germany's Allianz has been examining options for its Allianz Global Investors unit, including a possible merger or partial sale of the division, Reuters reported in October. Asset manager Pimco, which Allianz also owns, was not part of the discussions.

Allianz and Paris-based Amundi, Europe's largest asset manager and owned by French bank Credit Agricole, have been holding talks about a tie-up for some time but have since stopped, the source said. It is not clear whether talks could restart at a future stage.

A spokesperson for Amundi said on Sunday it was not in discussions with Allianz and declined to comment further.

AllianzGI, which oversees 560 billion euros of assets according to its website, could be valued at more than 4 billion euros, including debt, Reuters had reported in October.

The Financial Times, citing people familiar with the situation, reported on Saturday that a key sticking point between the two sides had been the structure of any combination and who would have control of an enlarged group.

Allianz's considerations about what to do with AGI follow BNP Paribas' decision to buy AXA Investment Managers for more than 5 billion euros, a transaction that bankers expected would spur more dealmaking. Amundi also had been vying for the unit, Reuters reported.

Allianz's finance chief Claire-Marie Coste-Lepoutre said last month that the insurer liked its current set-up and did not aim to reduce the contribution that its asset management businesses make to the group.

($1 = 0.9463 euros)

(Reporting by Alexander Hübner in Munich; Editing by Tommy Reggiori Wilkes and Andrea Ricci)