ROME, Sept 8 (Reuter) - Tibet's exiled spiritual leader, the Dalai Lama, said in an interview published on Monday that he would be prepared to renounce his status and return to China, but hinted that he would need guarantees on his homeland first.

"It has been offered to me to return, to establish myself in (Beijing)," the Dalai Lama, exiled for nearly 40 years, told the Italian daily La Stampa from Prague, where he attended a forum.

"But the problem is not my residence, it's the fate of my people. I would like to confer my powers to a legitimately-elected government and in view of that I am ready to return to China.

"I recognise that in all these years, the Chinese have modernised Tibet in certain ways. They have built schools, hospitals, roads, houses. But at the same time, they are introducing political education in schools and this is based on Chinese culture. The risk is of the extinction of our culture."

Chinese officials and the media regularly accuse the Dalai Lama, who fled to India in 1959 after an abortive uprising against communist rule, of seeking to split Tibet from the rest of "the motherland" and whipping up anti-communist sentiment.

The Dalai Lama has only returned to Chinese soil once during his exile, when he visited Taiwan, which Beijing regards as a rebel province, in March.

Beijing said in April a channel remained open with the Dalai Lama but accused him of refusing to give up independence claims.

The "God-King,"who won the 1989 Nobel Peace Prize for his non-violent campaign in favour of more autonomy for his Himalayan homeland, told La Stampa that independence was "an unrealistic goal which would not even be suitable for Tibet."

"We have no intention of having a fully independent Tibet because we know that that would be a threat to Chinese unity, that it would be a disaster for everyone," he said.

Asked about the five-yearly Communist Party congress which begins on September 12, the Dalai Lama said he expected little change for Tibet but hoped China's leaders would emerge strengthened in order to pursue reforms to open up the country.

"A China in economic growth and political stability is positive for everyone, including Tibet's cause. I would be happy to have a meeting with (party chief and state president) Jiang Zemin and tell him these things personally," he said.

"It would be good to deepen contacts and we are willing," he said. "I am ready to go to (Beijing) even tomorrow."

He said he had prayed for China's late paramount leader Deng Xiaoping, who introduced capitalist-style reforms.

"Prosperity and openness to the world will inevitably lead China to take stock of its policy in Tibet. There's a whole new generation in China sensitive to the problem in a way the previous one was not. That's why I am fundamentally optimistic."

The Dalai Lama is due to arrive in northern Italy later on Monday for a three-day visit.