The offer comes after the third shift at the plant was cut and is expected to be made to chief executive, Jean-Martin Foltz, in a meeting after the election.
Peugeot says it is committed to producing its 206 model at Ryton, which employs 3,000, until 2010. The plant's subsequent future will be decided early next year when Peugeot chiefs discuss where to build the replacement.
"I have fears over Peugeot's long-term future in the UK," says Roger Maddison, national officer for the car industry at trade union Amicus. "The Government is pressing hard to find a rescue package for Ryton and we are hopeful it will be able to throw a few quid at the plant."
A Peugeot spokesman said it was too early to discuss Ryton's future. But he confirmed that the DTI "has put in a request to meet and discuss a general range of subjects with us".
Source: the Independent