Google Inc said yesterday that it is not leaving China, and will try to seek consultations with relevant Chinese departments in the coming days, the Reuters reported.

There are wild speculations that the Internet search giant is considering pulling out of China market over hassles including cyber-attack concerns, it reported.

The Reuters said that Beijing has tried to play down the matter, saying there exist many ways to resolve the dispute, but insisting all foreign companies, Google included, must abide by Chinese laws.

Some analysts said that the confrontational approach with China by Google Inc has damaged its prospects in the world's largest Internet market, regardless of whether it carries out its threat to quit the country.

The Reuters quoted UBS analyst Wang Jinjin as saying that Google's relationship with local advertisers has been damaged as a result of the threat and that they will choose Baidu Inc over the firm.

On Saturday, Yahoo was dragged into the growing row after its Chinese partner Alibaba Group slammed its statements supporting