Swedish luxury sports car maker Koenigsegg backed by Norwegian investors is reported to be in the process of acquiring Saab Automobile from General Motors.

A Swedish television report citing unconfirmed sources said on Thursday that Koenigsegg has signed a letter of intent to buy Saab.

"We are getting close to a deal done, but there are some final steps to be taken," the report quoted a source close to the matter as saying.

Both Saab and its parent company GM declined comment. But UK daily `The Financial Times' had named Koenigsegg and US investment firms Renco and Merbanco as possible bidders.

Media reports had also pointed to Italy's Fiat as another possible buyer..

''These are extremely exciting times for Saab and as we move closer to securing new investment the media speculation is at fever pitch. To set the record straight there has been no official announcement relating to any potential investors but rest assured our negotiations are on track and we expect to have a new ownership structure finalised in the early summer. 

Until then enjoy the increased speculation in the knowledge that the next chapter in Saab Automobile's history is just around the corner. . .'', Saab said in a website release.

Bankrupt General Motors put Saab up for sale after it filed for bankruptcy felled by the falling demand amid the global economic downturn. Saab's reorganisation process began separately in Swedish courts in February.

Koenigsegg, set up in 1994, makes just 20 deluxe sports cars a year and sells them for over a million euros ($1.4 million). But selling that may cars too have become a difficult proposition amidst the current global slump.

Stockholm on Thursday said it had authorised the Swedish Debt Office, the state banker, to discuss guaranteeing a 500-million-euro loan made to Saab by the European Investment Bank (EIB).

"We have always said that the debt office could start negotiations on guaranteeing the loan when Saab has a new owner," state secretary for business Joran Hagglund said in a statement.

Stockholm had refused to follow Washington's lead in bailing out its automakers over fears it would end up in GM's pockets.

Saab sold 93,000 cars worldwide in 2008, according to its website.

It owes 9.7 billion kronor ($1.3 billion or 924 million euros) to GM - its largest individual creditor. It also owes 347 million kronor to the Swedish government and 647 million kronor to other creditors.

Saab employs about 3,400 people in Sweden and provides employment to 15,000, including suppliers.