By Juliette Jabkhiro and Dominique Vidalon

PARIS, Online Casino June 9 (Reuters) - A French judge on Thursday proposed mediation in a legal dispute between Casino and indigenous groups from Brazil over Casino's links to Amazon deforestation.

Lawyers for Online Casino said the French retailer supported the mediation proposal, while an attorney for the indigenous groups said he would be advising his clients to back the proposal.

The Amazonian groups allege Casino failed to do adequate due diligence of its supply chain, resulting in the sale of beef linked to deforestation and human rights abuses in the Amazon.

It is the first time a French supermarket chain has been taken to court over deforestation and the loss of land and livelihood under a 2017 law in France called "Devoir de Vigilance".