Audi has denied a report that Martin Winterkorn is considering selling off its Seat subsidiary.

A report in the Germany automotive industry journal, Automobilwoche, reported that Winterkorn is weighing up whether to sell the loss-making unit, quoting insider sources.

Automobilwoche said that Giuseppe Tartaglione, head of Seat, "has already got his letter of resignation in his pocket".

Seat has been part of the Volkswagen Group since 1986.

The decision may be linked to the decision to build the new Audi A1 in Brussels. Seat management had hoped that the model would be produced at its Martorell plant, helping to position Seat as the small car manufacturer of the group.