The German government might drop its opposition to Belgian-based financial investor RHJ International (RHJI.BR) as a buyer for General Motors' GM.UL European unit Opel, Bild newspaper reported on Thursday.

Berlin could be willing to accept RHJ if it teamed up with an international partner from the car industry, the mass-selling daily said, without saying where it obtained the information.

Germany's Economy Ministry was not immediately available for comment.

The German government had so far favored Canadian car-parts supplier Magna (MGa.TO) over RHJ, which aims to shrink the carmaker to return it to profit.

Talks to sell Opel have dragged on for months and are a political hot potato ahead of German elections in September, because of the state support required for the eventual buyer.

GM's board of directors on Friday postponed a decision on proposals by GM's management to relinquish a controlling stake in Opel either to Magna or RHJ.

A GM source told Reuters on Monday the company was considering a third alternative that would see it inject billions into Opel to hold on to the company, though people close to the talks have said this might be a bargaining tactic.

(Reporting by Peter Dinkloh, editing by Will Waterman)

Germany