MADRID, Oct 30 (Reuters) - Saudi telecoms group STC is seeking to keep its current 4.9% stake in Spain's Telefonica and no longer plans to convert the 5% it holds in derivatives into voting shares, El Economista newspaper reported on Monday, citing people familiar with the operation.

Telefonica and STC declined to comment on the report. The Spanish government also had no immediate comment.

(Reporting by David Latona, Belen Carreno, Jesus Aguado and Inti Landauro; Editing by Andrei Khalip)