Venice, Italy - Venice's mayor denied Monday news reports that the famous lagoon-city is about to "sell its soul" in a sponsorship deal with US soft-drink maker Coca-Cola.

Instead, Mayor Massimo Cacciari and other local officials defended the reported 2.1-million-euro-agreement (2.7 million dollars) which includes placing in the city of Venice some 60 vending machines for beverages and snacks.

"The city's image won't be tainted by advertising slogans," also because the machines won't display Coca-Cola's red-and-white logo, the mayor's chief-of-staff, Maurizio Calligaro said.

Just over a dozen of the vending machines will be located at boarding jetties for the city's "vaporetti" or water-bus public transport service.

Most of the others will be placed at the city's municipal parking lot and away from famous landmarks such as St Mark's Square and the Rialto Bridge, Calligaro explained.

Money from the deal would be used to safeguard Venice's cultural and architectural heritage, as is being done in "other cities around the world," officials said.

They pointed to similar "territorial marketing" initiatives in Venice including car-maker Lancia's sponsorship of restoration work at the Doge's Palace, and watch-maker Swatch's support for the upkeep of the city's historic Marcian Library. (dpa)