Volkswagen AG has said it would seek a potential further EUR10bn from shareholders to secure its merger with Porsche and safeguard its financial stability.

The automaker plans to ask shareholders next month for authority to issue up to 135m new preferred shares by December 2014, Reuters reported.

Based on the current price of Volkswagen's preferred shares, the total value of the cash call would amount to about EUR10bn, though it is likely to be issued at a discount.

"This would allow the Volkswagen Group to maintain its medium-term financial flexibility while at the same time safeguarding its good rating over the long term," it said.

Porsche said in August it would sell a 42% stake in Porsche AG, its healthy sports car business, to VW for EUR3.3bn (US$4.9bn) as part of a multi-stage deal to integrate the two companies by 2011, the report noted.

Volkswagen would also ask shareholders to formalise part-owner Lower Saxony's right to appoint two members of the supervisory board, the company's board of directors.

It wants the company's articles of association to incorporate the rights of appointment if Lower Saxony holds at least 15% of the company's ordinary shares.

Volkswagen also wants shareholder resolutions on important decisions to require a majority of more than 80% of share capital represented when the resolution is adopted.