BEIJING--A radical stimulus package to fight the impact of the global financial crisis on China could be announced this month as the economy enters an "excessive slowdown", state media said Thursday.

"Only a radical stimulus package can save the country from excessive slowdown," a senior Cabinet official, who refused to be named, told the China Daily.

The official, who the paper said was close to China's top decision-makers, said he had submitted a report to the central government urging it to implement an active fiscal policy to encourage government spending and investment.

His suggestions are expected to become policy in November or December when China's government convenes its annual economic and financial conference, according to the report.

China's economy has been affected by a slump in exports as other countries are hit by the global financial meltdown, and thousands of people have already lost their jobs as their companies go bankrupt or suffer huge losses.

Growth in the world's fourth-largest economy slowed to nine percent in the third quarter, the lowest in over five years.

Authorities have said they want to stimulate domestic demand to counter the negative impact of lower external demand.

In his report, the official suggested that bigger infrastructure and clean energy projects be launched, projects to increase employment be encouraged, and foreign trade be stimulated through bolder tax rebates, the China Daily said.

"All in all, our priority is to stop excessive slowdown," the official told the newspaper.

"And that's about employment, the livelihoods of millions and social stability."

State media reported Wednesday that China is considering a plan to invest five trillion yuan (730 billion dollars) in the transport sector in the next three to five year.