The government is expected to provide financial support to the administrators at MG Rover for at least another week.

Ministers have already given a £6.5m loan to PricewaterhouseCoopers to allow them to pay the wages of the 6,000-strong workforce at MG Rover's Longbridge plant.

The team from PwC is understood to need a further extension to give it time to draw up a business plan for the struggling carmaker.

It is still hoped that a deal can be made with the Chinese firm, Shanghai Automotive Industry Corporation, which had previously been considering a joint venture with the British car company.