Better relations between the Government and Tata have raised the prospect of a deal for Jaguar Land Rover this week.
An improvement in the Indian Motor company's credit rating has also helped the pair's 10-month-long negotiations potentially come to an end, reports BirminghamPost.net
Smoothing the path to an agreement are the fact ministers are said to be desperate to conclude the process.
Sources close to Tata also claim demands for a Government seat on the JLR board and a veto on redundancies were removed after the Treasury became more confident in the finances and strategy of the Indian conglomerate.
Also boosting the chances of a deal is the fact commercial banks heartened by Tata Motors' better than expected profits last week, are now expected to guarantee in full a £340m investment in JLR by the European Investment Bank.
These changes in the negiotiations could mean the only thing to do now is get the Government to agree a commercial loan of £175m for working capital.
This in turn would be backed by secondary commercial guarantees to ensure risks to taxpayers' money is all but eliminated.
Despite the advances, sources close to Tata are dampening speculation of an immediate end to the saga.