France has still not decided on whether it will deliver warship to Russia or refund it

French President Francois Hollande says he has still not decided on whether France will deliver a Mistral-class warship to Russia amid growing speculation that he could choose to refund it.

France suspended the delivery "until further notice" last year because of the conflict in Ukraine.

A top French diplomatic official earlier this week said France has started negotiating refund payments in order to avoid paying financial penalties. He spoke anonymously because he was not authorized to disclose details of the negotiations.

However, following a meeting with Russian President Vladimir Putin in Armenia Friday, Hollande said the issue was still unresolved.

The Mistral-class helicopter carrier was part of a 1.2 billion euro ($1.28 billion) deal that was supposed to be the biggest arms sale ever by a NATO country to Russia.