Portuguese airline TAP and Brazil's financially-troubled carrier Varig said on Monday they would continue talks to reach a partnership although previous negotiations for an alliance between the two have ended.

TAP had been studying the possibility of taking up to a 20 percent stake in Varig, which has been struggling to pay down its debts and keep its fleet aloft in recent years. On Friday, Varig filed for legal protection from its creditors in a process similar to US-style bankruptcy protection.

"That old model for a partnership with TAP does not make sense anymore, but we will continue talking on different terms, with them and others," Varig President David Zylbersztajn said.

In Portugal, TAP President Fernando Pinto told employees in an internal communication the airline was still keen on reaching some kind of partnership with Varig.

"TAP continues to closely follow the (legal) process, since the strategic reasons that led us to seek a deep partnership with Varig continue to exist," Pinto said in the memo.

Varig filed for the legal protection to keep creditors from seizing its planes. It has 60 days to present a plan showing it is still a viable business.