General Motors has announced a "binding agreement" to sell its Saab division to Dutch luxury sportscar maker Spyker, giving an 11th-hour reprieve to the storied Swedish brand.

As part of the agreement, Spyker will form a new company, Saab Spyker Automobiles, which will carry the Saab nameplate forward and avert the planned liquidation of Saab.

The announcement appears to end a series of on-again, off-again deals for the Swedish automaker, amid intense fears of job losses in the Scandinavian country.

GM officials said the deal calls for Spyker to pay $74 million in cash and allow the US giant to retain redeemable preferred shares worth an estimated $326 million.

Assuming quick action, the transaction is expected to close in mid-February, according to GM, which said that it would suspend its previously announced wind-down activities at Saab.

"Today's announcement is great news for Saab employees, dealers and suppliers, great news for millions of Saab customers and fans worldwide and great news for GM," said GM vice president for corporate planning and alliances John Smith.

"General Motors, Spyker Cars and the Swedish government worked very hard and creatively for a deal that would secure a sustainable future for this unique and iconic brand, and we're all happy for the positive outcome."

Spyker said the terms call for an instalment of $50 million by the expected closing date of February 15 and $24 million to be paid on July 15.

Sweden will guarantee a loan of €400 million from the European Investment Bank to support the transaction, Swedish Enterprise Minister Maud Olofsson said in Stockholm.

Under GM's stewardship, spanning almost two decades, Saab rarely posted a profit and last year lost 3.0 billion kronor, the equivalent of €241 million at the time.