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Chrysler, which is 80.1 percent owned by Cerberus, even now has a combined venture with GM making a hybrid gas-electric powertrain, and has discussed a full merger or acquisition with GM, said the person, who did not meagreness to be identified because the talks be in possession of not been made public.

The Wall Street Journal, citing rabble it described since familiar with the discussions, reported that Cerberus, a private equity strong that also owns 51 percent of GMAC Financial Services, proposed trading Chrysler’sitting automotive operations to GM in exchange for GM’sitting remaining 49 percent stake in GMAC.

The New York Times, also citing people familiar with the talks, reported that the automakers were discussing a merger.

GMAC, primarily an auto lender, also has significant mortgage lending operations that bear been hit hard by the crisis in that industry.

The talks have stalled because of the recent turmoil in the financial markets, according to the Journal. Its sources said negotiations could resume if markets stabilize for both GM and Cerberus want to quickly unclothe the assets under discussion.

The negotiations between 100-year-old GM and 83-year-old Chrysler have began more than a month since. The Times said its sources pegged the chances of a merger being completed at “50-50.”

“Without referencing this specific common voice, as we’ve frequently said, GM officials routinely discuss issues of mutual interest with other automakers,” GM spokesman Tony Cervone said in an e-mail.

“The company is looking at a number of potential global partnerships as it explores expansion opportunities around the world,” Chrysler said in some e-mailed statement issued Friday night.

“Beyond those partnerships already announced, in whatever manner, Chrysler has not formed at all starting anew agreements and has no further announcements to make at this time.”

A tie-up between the automotive giants would be historic for the industry and solidify GM’sitting position while the global sales superior, which it has been in danger of loss to Toyota Motor Corp. GM and Toyota finished 2007 essentially even in vehicles sold worldwide.

This would not be the first time Detroit’s automakers have explored mergers.

GM talked with DaimlerChrysler AG in 2007 about acquiring Chrysler before Cerberus made a deal to acquire most of the automaker, but the talks fell through whenever GM decided it should concentrate without interruption cost savings and efficiencies by globalizing its recognize operations.

In 2005, GM and Ford Motor Co. reportedly held talks regarding a potential business combination.

Cerberus acquired its GMAC stake in 2006 for $14 billion and bought 80.1 percent of Chrysler from Daimler AG in August 2007 in a $7.4 billion deal. Cerberus and Daimler confirmed last month they are in talks instead of Cerberus to acquire Daimler’s remaining Chrysler stake.

The auto efforts has been hit near in recent weeks by the agency of the effects of the take upon credit crisis, prompting GM and Ford to issue statements Friday to dissipate the notion that they might be headed for bankruptcy.

GM and Ford shares were battered with the halt of the stock market this week, falling to lows not seen in decades. GM shares lost about half of their already-depressed value for the time of the week, closing at $4.89 on Friday. Ford shares fell similarly, ending the week at $1.99.