The Volkswagen supervisory board has agreeed to select Ferdinand Piech as its chief for a further term at the Group’s annual general meeting on 19 April.

The Frankfurter Allgemeine Zeitung newspaper said the agreement was reached on Friday, but added that Volkswagen would not confirm this officially.

VW has, hoever, confirmed that CFO Hans Dieter Pötsch will remain for a further five years – the 55-year-old’s contract has been extended to 2012. Pötsch first assumed the role in 2003 and it had been thought that he would move on following the resignation of former CEO Bernd Pischetsrieder. His current contract runs until end-2007.

Volkswagen made big improvements in 2006, achieving a new sales record and increasing its operating result by more than 50% to EUR4.4bn.