LONDON - US auto giant General Motors has stepped up talks with RHJ International over a rival deal to sell its European units and could sign a memorandum of understanding this week, a report said Tuesday.

Citing a person close to the sale process, the Financial Times said the Brussels-based industrial holding company had improved its earlier bid for Opel/Vauxhall and GM was taking it very seriously.

The German government in May unveiled a rescue plan under which 55 per cent of Opel would be sold to Canadian firm Magna, but talks have bogged down since.

FT cited its source as saying that an MoU could be signed with RHJ International within days, after the company took more account in its offer of political sensitivities over potential job losses in Germany.

"GM's negotiating team would love to see if we can get two very solid, definitive agreements sketched out from which to choose," the person close to the sale process was quoted as saying. -AFP