The Government is in talks with major banks over plans to introduce a new industry-wide no-frills bank account, according to a report.

But Sky News said that those close to the negotiations say there have been disagreements in recent weeks about the structure of the new basic bank accounts and the level of fees that could be imposed for using them.

Sky said it understands that Chancellor George Osborne wants to make an announcement that banks have agreed to the proposals soon, with a possible declaration as early as next week's Autumn Statement.

Basic bank accounts, which are already offered by several banks, are often handed out to people with a poor credit history.

The purpose of them is to make sure people get access to banking facilities so that they can receive money and pay bills. These types of account tend not to come with a cheque book or overdraft.

Barclays, HSBC, Lloyds Banking Group and Santander are among the banks which are reported to be involved in the Government discussions.

Under an EU directive adopted by the Council of Ministers in July, member states must ensure that citizens have access to a basic payment account within two years.

Sky said that while European law says the account must charge fees which are "fair", it understands that the Treasury is pushing for UK bank bosses to commit to providing accounts which levy no fees or charges at all.

Lenders have also reportedly been told that they new account should offer a debit card, ATM access and the ability to withdraw cash in branches.

The British Bankers' Association (BBA) declined to comment on the report t hat banks have been in such talks with the Treasury.

Barclays also declined to comment. Barclays already offers a "cash card" account, which offers basic banking to people who may not be able to open a more regular current account.

Like other current accounts, the cash card account can be managed in branch, over the phone, online, with access also to mobile banking.

A spokesman for Santander said: "Santander already has basic current account free of charges to ensure those on benefits do not have to contend with bank fees.

"We are also progressing plans to introduce a pre-paid debit card for these customers to help them stay in control of their money."

HSBC also gave no comment on the reports of talks but it also pointed out that it offers a basic bank account which it has worked closely with the Government to set up.

Customers can have a debit card, set up standing orders and direct debits and have access to HSBC's branch network, including internet and telephone banking.

HSBC also highlighted efforts it has gone to to make the basic account opening process straightforward, for example where standard identification is not available it can accept letters from a hostel manager, a prison governor, a probation officer, a social worker, an employer, a GP or a minister of religion.

Lloyds, which also offers free basic banking facilities for people who need somewhere to pay their benefits to, or have a limited income or have had financial difficulties in the past, also declined to comment on the report.