Brazil's Petrobras, Eletrobras close to $5.8 billion debt deal - paper

BRASILIA (Reuters) - Centrais Elétricas Brasileiras SA and Petróleo Brasileiro SA are close to agreeing on a deal to solve a dispute involving 20 billion reais ($5.75 billion) worth of Eletrobras debt, newspaper Valor Econômico said on Friday.

Eletrobras, as the state-controlled power company is known, owes state oil firm Petrobras for fuel supplies used in thermal generation in northern Brazil.

The dispute has been a hurdle for Eletrobras' privatisation, a landmark proposal of President Michel Temer's administration.

The details of the agreement could be unveiled as soon as Friday following an Eletrobras board meeting, Valor said, citing a source with knowledge of the matter.

Representatives for Petrobras and Eletrobras were not immediately available to comment.

($1 = 3.48 reais)

(Reporting by Bruno Federowski; Editing by Steve Orlofsky)