KUALA LUMPUR, Sept 28 — Malaysia may revive its negotiation with the European Union for a free trade agreement by the end of 2016, said Prime Minister Datuk Seri Najib Razak.

According to New Straits Times, Najib said there have been preliminary talks in the direction, and also told German business leaders during his official visit to Germany that such a trade deal would ensure mutual economic benefits.

"We are sure we will have Germany’s continued support for the re-launch of these negotiations,” he said.

The EU is Malaysia’s largest trading partner and second largest source of foreign direct investment.

The trade deal was initially mooted in 2010 but negotiations stalled due to the focus on the Trans Pacific Partnership (TPP) trade agreement, which was agreed to late last year.

TPP is expected to come into force in early 2018.