GM and PSA Peugeot Citroen are expected to confirm that the US manufacturer will take a 7% stake in the French manufacturer.

Both parties have been in discussion since last year and a potential deal would see the companies share engine, transmission and vehicle development.

GM and PSA are not commenting on the deal but were expected to be making an official announcement at the Geneva Motor Show next week.

As a result of the leak to the press, further details could be revealed tomorrow.