France's PSA Group, maker of Peugeot and Citroen cars, has reached a deal with General Motors to buy its Opel and Vauxhall brands, according to reports.
PSA's board agreed the deal on Friday, and an official announcement is planned for Monday, said Reuters, citing unnamed sources.
News that the two companies were in talks emerged last month raising fears that the deal could lead to job losses.
Vauxhall has 4,500 UK staff based at plants in Ellesmere Port and Luton.
Opel employs about 19,000 people in Germany, about half its workforce..
Politicians and unions in both Germany and the UK have been lobbying PSA and GM on behalf of their respective workforces.
They fear that PSA, which is 14% owned by the French state, may cut jobs outside France.
If an outline deal has been reached this lobbying looks likely to increase.