Sources close to merger talks between Fiat and GM Europe have told Sky News that Vauxhall plant closures and major UK job losses are "almost inconceivable".
While unions remain unconvinced, the Italian car maker dismissed German media reports that Vauxhall's Ellesmere Port and Luton plants would close if the merger went ahead.
Fiat issued a statement saying the information in the report "does not come from Fiat and is not part of any plan prepared by the company".
German unions have said they fear around 10,000 jobs could be axed in Europe if America's General Motors sells its European operations to the Italians.
Giada Zampano, a correspondent for Dow Jones Newswires, told Sky News: ""There is bound to be a social cost as a result of a Fiat/GM tie-up in Europe because many of Fiat and Opel operations in Germany overlap. There will be some resistance from the unions."
Vauxhall employs around 5,000 workers at its UK factories in Luton and Ellesmere Port, along with dealerships.
Following a meeting with Fiat boss Sergio Marchionne, labour leader Klaus Franz predicted that between 9,000 and 10,000 jobs would go.
"The financing concept for me is absolutely not convincing. In my opinion he (Mr Marchionne) is risking everything," Mr Franz said.
"He wants to build a global carmaker financed with German and American taxpayer money."
Fiat confirmed this week it was looking at buying up Opel and Mr Marchionne met with Germany's economy minister to discuss the move.
Karl-Theodor zu Guttenberg said Fiat had pledged to keep the three main German factories.
The deal to absorb Opel comes as Fiat prepares to acquire the troubled US carmaker Chrysler.
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