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  Privately-owned Koenigsegg Group AB could and Saab have signed a memorandum of understanding to seal Saab's future which could lead to a sale by September.

Swedish supercar maker Koenigsegg is the front runner to buy Saab from General Motors.

Saab, which is being removed from the books of beleagured GM, filed in February for reorganisation with the Swedish government. This was the first step to begin as an independent company.

Saab and privately-owned Koenigsegg Group AB have signed a memorandum of understanding to seal Saab's future. It could lead to a sale by September.

The proposal includes an expected $770 million funding commitment from the European investment Bank (EIB) that will be guaranteed by the Swedish government.

Further financial and structural support will come from GM and Koenigsegg to ensure Saab's operations and product programs.

Saab plans to launch several new products that are in the final stages of development.

As part of the proposed transaction, GM will continue to provide Saab with architecture and powertrain technology.

Saab plans to produce its next generation 9-5 model at the company's Trollhattan factory.

Koenigsegg Group AB is a consortium of private investors led by supercar manufacturer, Koenigsegg Automotive AB.