MILAN, Dec 1 (Reuters) - The board of UniCredit would never agree to a transaction that harms the group's interests and its capital position, a spokesman for the Italian bank said on Tuesday.

Shares in the bank dropped 8% on Tuesday following news Chief Executive Jean Pierre Mustier would step down when his mandate ends in April, or as soon as a replacement is found.

Mustier's exit fuelled concerns UniCredit may embark on an acquisition of bailed-out Monte dei Paschi which sources have said the bank had been discussing with Italy's Treasury. Mustier had prioritised returning capital to investors over mergers.

"UniCredit confirms the re-instatement of the capital distribution policy, as per recent financial guidance, from calendar year 2021 onwards, subject to regulatory green light," the spokesman said.

(Reporting by Valentina Za, Editing by Franklin Paul)