The Bill and Melinda Gates Foundation is close to reaching a landmark agreement to start an AIDS initiative in China, a spokeswoman confirmed Wednesday.

Bill and Melinda Gates address the opening ceremonies for the AIDS 2006 conference in Toronto,Canada Sunday Aug. 13, 2006. [AP]

The foundation, headed by Gates, the world's richest man, and his wife, is in final-stage talks to sign a memorandum of understanding that would provide help to China as it tackles the spread of HIV.

A report quoted officials with other non-governmental organizations as saying that the total contribution would be close to $200 million over five years.

But the foundation said that amount is incorrect.

"That is actually the figure for our India program, not our China program," said spokeswoman Jacquelline Fuller, who was in Toronto for the International AIDS Conference.

"A final funding decision for China has not been made but it will be significantly smaller than the $200 (million) figure."

China's infection rate is low, at about 0.1 per cent, but the virus is spreading fast. Last year, there were 70,000 new HIV infections in China, according to UN statistics.