Volkswagen's supervisory board has approved the contracts and final details for a staged takeover of Porsche.

In a statement Volkswagen said it would purchase a 49.9% stake in Porsche by the end of this year and that it would merge with the sports car maker's parent, Porsche SE, during the course of 2011.

The supervisory board of Porsche will meet today (November 20) to consider the contracts.

Volkswagen shareholders are due to vote on financing measures, including the issue of new preferred shares, at a December 3 meeting.

After an audacious plan by Porsche to take control of Volkswagen failed, Porsche SE agreed earlier this year to the Volkswagen plan to integrate the two companies - under VW's leadership - by 2011.