Reliance Big Entertainment, part of the Reliance-Anil Dhirubhai Ambani Group (R-ADAG), might seal its much talked-about $1 billion deal with Steven Spielberg's DreamWorks production company this week, the Wall Street Journal (WSJ) newspaper has reported.

The paper said the move would enable Spielberg to exit from the Paramount studio umbrella.

According to the earlier general outline of the deal, R-ADAG would invest $500 million in DreamWorks' new productions and another $500 million in debt through JP Morgan Chase, the report said.

However, R-ADAG refused to confirm the report.

"No comment, please" was the response of Reliance Big Entertainment president Rajesh Sawhney, when contacted by Monday.

Meanwhile, Variety newspaper in the US reported Monday that DreamWorks was now trying to woo away three production houses from the Paramount umbrella.

If these three houses come out of Paramount and join Spielberg's new studio, DreamWorks' scope would further widen.

In such a situation, according to Variety, "Reliance is understood to have sought a greater slice of the new company".

Even in that case, R-ADAG's stake would be less than that of DreamWorks in the new entity, the report added.

The new studio, which will retain the name DreamWorks may make up to 10 movies a year, depending upon the cash inflow.

The movies will probably be distributed by Universal, the studio Spielberg had earlier been associated with.