Saab owner Spyker is now confirming it is holding talks with BMW for a possible supply relationship agreement.

The Dutch owner had remained silent earlier today (27 September) on speculation it was about to announce a tie-up with BMW, but has now confirmed it is in negotiation with the German automaker.

"Spyker Cars - a holding company that owns subsidiaries which produce and sell premium automobiles under the Saab and Spyker brands - has noted recent press speculation about the possible supply relationship with BMW," it said in statement today.

"The group confirms talks are ongoing and will give further details once a final agreement has been reached."

Reports have indicated any announcement could come this Wednesday (29 September).

Any joint work with BMW would come hard on the heels of last week's announcement by Saab of the formation of a jointly-owned company with American Axle Manufacturing to develop electric all-wheel drive systems.