General Motors is prepared to sell its European carmaker Opel to Canada's Magna, two people familiar with the negotiations told Reuters on Thursday.

It will be Magna, but under conditions, one of the people said.

GM is set to end months of suspense over the fate of its Opel unit and announce whether it plans to sell the European carmaker to one of two rival bidders, Canadian automotive supplier Magna or financial investor RHJ.

A board of trustees that controls a majority stake in Opel has final say over who buys the company.

(Reporting by Phillip Halstrick and Angelika Gruber; Writing by Maria Sheahan)

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