Deutsche Telekom is considering slashing its dividend by up to a third from 2013 onward, German business daily Handelsblatt reported, citing supervisory board sources.

The paper said that by cutting the dividend, Chief Executive Rene Obermann is to receive more financial leeway to invest in networks and new products.

Deutsche Telekom is expected to hold its dividend stable at 0.70 euros per share for the financial year 2012, Handelsblatt reported, the same amount that was paid out for 2010 and 2011.

Deutsche Telekom was not immediately available for comment.

(Reporting by Christoph Steitz; Editing by David Cowell)