Berlin  - Canadian car parts manufacturer Magna has reached agreement with General Motors (GM) on the terms of a takeover of German carmaker Opel, German government sources said Friday.

The proposal, aimed at rescuing GM's European subsidiaries from the US car giant's anticipated insolvency, is to be discussed at a special meeting hosted by the German government Friday evening.

German Vice-Chancellor Frank-Walter Steinmeier mediated the agreement during talks with Magna chief executive Frank Stronach, government sources told German Press Agency dpa.

A number of questions remain unresolved, including the appointment of a board of trustees to oversee Opel, a move demanded by Berlin but opposed by the US government.(dpa)