The United Auto Workers (UAW) union has reached a tentative deal with the US Treasury Department and General Motors Corp. on modifying a labor agreement and restructuring payments into a union-run health care trust, reports said on Thursday.

UAW local presidents and executives are expected to meet in Detroit on Tuesday with local ratification meetings scheduled for late next week, according to a Detroit News report.

A UAW deal is a key piece of GM's restructuring plan and attempt to avoid a Chapter 11 bankruptcy filing. If GM, now operating with US$15.4 billion in federal aid, enters bankruptcy court, deals with the UAW and other stakeholders could help the automaker emerge within a few months.

The announcement comes after three days of meetings between the UAW, GM and the Treasury Department in Washington, D.C., aimed at reaching a comprehensive labor savings agreement ahead of a June 1government deadline.