The city of Hangzhou has proposed an online version of Shanghai's free trade zone that facilitates cross-border e-commerce, the Shanghai-based Oriental Morning Post reported on Monday.

The host city of Alibaba Group Holding Ltd, one of the world's biggest e-commerce companies, said it is in negotiations with relevant ministries to create an online zone that is complementary in function to the landmark Shanghai FTZ.

Hangzhou's deputy mayor, Xie Shuangcheng, told the paper that the zone will focus on institutional innovation in customs clearance of cross-border e-commerce deals.

Xie made the comments at a joint meeting attended by mayors of cities in the Yangtze River Delta region, the country's biggest growth engine.

The zone will make breakthroughs in four areas, namely information sharing, financial services, intelligent logistics and e-commerce credit.