UPDATE 1-Turkey's Dogan denies newspapers' sale report

* Media report says 5 papers being sold to Axel Springer

* Dogan Yayin denies report

(Adds background, company statement)

ISTANBUL, Nov 10 (Reuters) - Turkey's media group Dogan Yayin (DYHOL.IS), which is in a dispute over a record tax fine, on Tuesday denied a media report that five of its papers were being sold to Germany's Axel Springer (SPRGn.DE).

The Aksam daily said on Tuesday that Turkish media mogul Aydin Dogan was selling the newspapers, but did not specify a source for the story.

"There is no such transaction between Axel Springer and Dogan Yayin Holding regarding Dogan Gazetecilik assets," a source at Dogan Yayin told Reuters. The company later issued a formal statement denying the report.

Dogan Yayin said in late October it was seeking new partners or the sale of stakes in subsidiaries in the face of a record 4.8 billion lira ($3.3 billion) tax fine.

In a subsequent official statement to the Istanbul Stock Exchange, Dogan Yayin also denied the report of the newspapers' sale.

The sale of the five papers - Milliyet, Vatan, Posta, Radikal and Fanatik - would leave the group with only the Hurriyet newspaper, alongside its television and other media interests.