What Car? understands that the Governments car scrappage scheme is to be extended into next year.
An announcement is expected by business secretary Peter Mandelson at the Labour Party conference taking place in Brighton.
The car industry has been lobbying for the scheme to be extended because the initial 300 million set aside for scrappage could possibly run out within the next week.
Car makers have been concerned that the ending of the scrappage scheme and VAT set to rise in January would send the car industry further into decline.
It is understood that the extended scheme will run with a time limit, rather than a financial limit, and is now expected to finish at the end of February 2010.
More to follow.