A source at Italian bank Monte dei Paschi on Wednesday denied a report in an Italian newspaper that the lender would announce a derivatives loss of 920 million euros ($1.24 billion) at a board later in the day.

Il Sole 24 Ore daily said the bank would reveal losses of 920 million euros from three derivative trades, much higher than the previously announced amount of 720 million euros, plus a further loss of 120 million euros in "personnel costs."

The source declined to elaborate.

The three 2006-09 derivatives trades only recently came to light and are now at the centre of an investigation against former executives at Italy's No. 3 bank.

($1 = 0.7392 euros)

(Reporting by Stefano Bernabei, writing by Jennifer Clark)