Europe's largest no-frills airline Ryanair plans to announce its choice of a new base in continental Europe next month to step up expansion in the region's booming budget airline market.

Ms Sinead Finn, Ryanair sales director for Italy, said yesterday the airline, which now flies from London, Dublin and Glasgow, was in talks with two airports on the mainland with a view to opening up a base this year.

An Italian airport was not among the shortlisted candidates, Ms Finn said. That leaves Frankfurt, Stockholm and Brussels as the most likely possibilities.