Washington/Stockholm, Jan 27 (DPA) General Motors reached a 'binding agreement' Tuesday to sell Swedish subsidiary Saab to Dutch-based automaker Spyker Cars, ending a year-long saga and saving the iconic brand from a complete wind-down that was already underway.

The Swedish government welcomed the rescue, which came after a weekend of final talks between Detroit-based GM and the Dutch niche sports car group.

'Today's announcement is great news for Saab employees, dealers and suppliers, great news for millions of Saab customers and fans worldwide, and great news for GM,' said John Smith, GM's vice president for corporate planning and alliances.

The Dutch carmaker will form a new company as a result of the deal, Saab Spyker Automobiles. GM will get $74 million dollars in cash, $326 million in preferred stock in the new company, and a 'third consideration' that Smith refused to detail.

Swedish Enterprise Minister Maud Olofsson told reporters that 'this is the result of long, arduous work.'

Olofsson said the government had been involved in the process since GM a year ago announced it wanted to shed Saab, but the government's principle was not to become owner of a car plant.