Porsche is planning to work with Volkswagen on a new entry model for the group.

Porsche finance chief Holger Härter told Handelsblatt newspaper he is currently working on a proposal for a future entry model with finance colleagues at Volkswagen, to present to VW and Porsche management.

"I am convinced that we will find an amicable solution to managing both companies in the future. We will probably decide on this model this year."

He also said that he expects Volkswagen representatives to be on the board of Porsche SE in the future. At the moment only Porsche chief executive Wendelin Wiedeking and Härter himself have seats.

The Frankfurter Allgemeiner Sonntagszeitung reported that Wiedeking has confirmed he will stay with the company until 2012, when his contract ends.

The paper referred to the dispute between Porsche major shareholders Wolfgang Porsche and his cousin, and former Volkswagen chief executive, Ferdinand Piëch. Piëch recently angered the Porsche family by siding with VW workers. Piëch may be trying to remove Wiedeking from his post, according to the report.

Wiedeking said he was convinced that once Porsche has acquired more than 50% of Volkswagen's shares, as it plans to do before the end of this year, arguments will cease. Last month, Porsche increased its stake in Volkswagen to 35%, giving it effective control of the company.