Volvo AB has reportedly agreed to withdraw from its truck venture with the state parent of Sinotruk, moving it closer to a possible tie-up with Dongfeng.

Reuters reports that Volvo reached agreement with China National Heavy-Duty Truck Corp recently to pull out of their truck venture, which suspended production several years ago due to poor sales.

The report says that the move could spur a partnership between Volvo and Dongfeng.

The report notes that Dongfeng had detailed discussions with Volvo years ago to bring the Swedish company into its vehicle venture with Nissan.