A deal would link-up Europe's third and fourth biggest truck firms

MAN said the rationale for a takeover - which would create a market leading company in Europe - was "compelling".

Analysts estimate that any potential deal might be worth as much as 12bn euros, ($15.2bn; �8.1bn).

Earlier this year MAN signalled it was on the lookout for stakes in rival firms, as part of a drive to hit its goal of a 47% rise in sales by 2010.

But any deal must win the approval of Volkswagen and Investor who both own significant stakes in Skania.

"Together MAN and Scania would become Europe's leading truck business, creating a platform for profitable growth," MAN added, saying it would issue a further statement next week.