"The management of Thailand's AirAsia is expected to complete the take-over in two to three weeks," the source told AFP on condition of anonymity.

It was earlier reported that management of Thai AirAsia had commenced negotiations to buy the 50 per cent stake.

 "Talks are in the final leg now," the source added.

 Thai AirAsia's management holds one per cent in the low-cost carrier, with Malaysia's AirAsia budget carrier holding 49 per cent, the maximum allowed under Thai foreign ownership laws.

 The source said with the acquisition, AirAsia Thailand will agressively pursue new destinations into China and speed up the introduction of the Airbus A320 aircraft.

 "AirAsia Thailand will soon mount the Bangkok-Shenzhen route and will accelerate the introduction of the A320 in October," he said.

 The budget carrier had previously planned to bring in the A320s only in 2010.

 Shin Corp's stake in Thai AirAsia is held by Asia Aviation, a company set up last year to bring the airline into compliance with Thai foreign ownership rules.

 Shin Corp holds 49 per cent in that venture, with the rest owned by Sittichai Veerathummnoon, a Thai businessman.

 Controversy erupted last year after Thailand's AirAsia was ordered to comply with the country's foreign ownership rules following the sale of Shin Corp, founded by ousted Thai premier Thaksin Shinawatra, to Temasek.

 Temasek paid Thaksin's family 1.9 billion dollars for their holding in Shin Corp in a tax free deal which sparked a series of demonstrations against the premier and eventually led to the military coup against him in September.

 Temasek subsequently acquired most of Shin Corp, which has an array of interests, most notably in the telecoms sector, but the military government has challenged the deal.

Agence France Presse