Toshiba yesterday admitted there are still major stumbling blocks to efforts to create a single format for the next generation of DVDs.

Rival consortiums, headed by Toshiba and Sony, have created two different technologies for high definition DVD - HD-DVD and Blu-Ray.

Fearing a re-run of the VHS versus Betamax video debacle, when millions of consumers were left with obsolete technology, the two sides have opened talks to create a single format.

Reports in Japan suggest the rival consortiums could consider peace proposals as early as next week. However, Toshiba said yesterday: "We are actively participating in talks towards format unification. At this point, however, nothing has been decided, and no decision has been made for unification on any basis. The indication that an agreement on the basis of a 0.1mm disc system is imminent is ... erroneous. Given this, Toshiba does not intend to make any proposal on unification to the HD DVD Promotion Group."