Under the non-binding deal, Zhejian Youngman Lotus Automobile would invest €136m for a 29.9% stake in Spyker.

Pang Da Automobile would increase its investment to €109m, retaining its previously agreed 24% stake.

The three firms have agreed a manufacturing and distribution agreement to allow Saab to expand its presence in China, which could see the carmaker manufacturing in China within two years.

In the Chinese joint manufacturing project, Youngman would take 45% of the shares, Saab 45% and Pang Da 10%.

For distribution, Youngman would hold 33%, Pang Da 34% and Saab Automobile 33%.

The deal is subject to approval from Chinese and European regulators and the European Investment Bank – a previous deal with Chinese firm Hawtai failed and agreement from Chinese authorities is not guaranteed.

Production at its main Trollhaettan plant in southwestern Sweden will remain at a halt. The firm re-started production for just two weeks after a seven-week closure.

Saab and Spyker chief executive Victor Muller said: 'It is a step that significantly strengthens Saab's financial position and would secure the mid and long-term financing for Saab automobile.'