RHJ International had improved its earlier bid and GM was "taking it very seriously" said a person close to the sale process on Monday, the paper added.

According to the paper, RHJ's new offer was said by this person to have taken more account of political sensitivities over job losses in Germany, which is providing $2.1 billion (1.3 billion pounds) of bridge finance to keep the carmaker afloat as GM goes through bankruptcy proceedings in the U.S.

Last month, Germany reached a preliminary agreement with Canadian auto parts group Magna International Inc over a takeover plan for Opel, General Motors' European unit.

General Motors and RHJ International could not be reached immediately for a comment by Reuters.

(Reporting by Hezron Selvi in Bangalore; Editing by Lincoln Feast)