New Zealand dairy giant Fonterra Cooperative is reported to be planning to buy a stake in China's Hebei Sanlu Dairy Group by the beginning of next year, in a move to expand its presence in the country's fast growing dairy market.

Despite the planned move, the company is unlikely to set up a joint venture with Hebei Sanlu Dairy, reported the Business Daily Update.

Following the stake purchase, Fonterra is to use a unified Chinese brand for all its dairy products in the country, and plans to move the headquarters of its Chinese subsidiary, Anjia Dairy, from Guangzhou to Shanghai next year, the report said.