(Corrects bullet point and paragraph 7 to say five UK sites instead of four UK plants, and deletes reference to possible demise of a famous company. Items first appeared in UPDATE 2)

* Holding talks on both short- and long-term financing

* Five UK sites employ more than 14,000 workers

* Sky News says "crunch time" after six months of talks (Adds strategist's quote)

LONDON, May 6 (Reuters) - The British government said on Wednesday that negotiations with luxury carmaker Jaguar Land Rover on guaranteeing financing are continuing despite reports that the talks were in trouble.

The Department of Business, Enterprise and Regulatory Reform (BERR) said the government is having confidential discussions with Jaguar Land Rover and its parent company, India's Tata Motors Ltd (TAMO.BO: Quote, Profile, Research), on both short- and long-term financing.

"These negotiations are continuing," it said in a statement.

"Any government financial assistance must, of course, protect taxpayers' money. But on this basis we are prepared to help, although not on any terms," it added.

The BBC said on its website that financial support for Jaguar Land Rover from the European Investment Bank (EIB) was in jeopardy after a dispute over the terms of the loan.