French club Bayonne has pulled out of talks with dumped Wallabies winger Lote Tuqiri because of his "latest financial demands".

The Top 14 club in a statement said, following the latest financial demands by Tuqiri, Bayonne has decided to bring talks with the Australian player to an end.

Earlier reports in the French press had indicated that the former Waratahs speedster had come to a verbal agreement to sign a two year contract with the Basque club.

The 57-test veteran winger came to France at the end of August to discuss a possible contract with Bayonne and also the Paris-based Stade Francais.