LONDON (Reuters) - German utility RWE <RWEG.DE> has made an indicative all-cash offer for British Energy <BGY.L> which values the nuclear power producer at up to 11 billion pounds ($21.7 billion), a source close to the matter said.

The source, confirming newspaper reports, said on Thursday that RWE tabled an indicative proposal a few weeks ago of just under 700 pence a share.

RWE, which owns British energy supplier npower, is one of a number of companies stalking British Energy, as companies across Europe look to take advantage of Britain's new drive to expand its nuclear power generation.

RWE and British Energy declined to comment.

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(Reporting by Mathieu Robbins, Editing by Mark Potter)