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The German government early Saturday said it selected Austrian-Canadian car parts maker Magna International Inc. (MGA) as a partner for General Motors Corp.'s (GM) German Adam Opel GmbH unit, ahead of a likely bankruptcy filing of Opel's parent GM in the U.S.

Speaking after hours of intense negotiations, German Finance Minister Peer Steinbrueck told reporters the German government is well aware of the risks posed by the deal, but nevertheless defended the rescue of the troubled German carmaker as justified.

Germany will provide EUR1.5 billion in bridge financing for Opel, paving the way for a takeover by Magna and its two Russian partners.

Magna has teamed up with Russian auto maker OAO GAZ Group (GAZA.RS) and state-controlled OAO Sberbank (SBER.RS) in its bid for Opel.

Steinbrueck said the EUR1.5 billion bridge financing, which it intended to keep Opel afloat until the details of a takeover by Magna are decided, is the upper limit the German government is willing to provide.

Steinbrueck said the parties involved also agreed on the model of a trusteeship for Opel for the interim period.

Speaking after the marathon talks that started Friday afternoon in Berlin, Magna co-Chief Executive Siegfried Wolf said he expects the deal with General Motors to be signed in five weeks.

Because of the agreement on the trusteeship and the bridge finance provided by Germany, Wolf said he sees no risk for Opel coming from an eventual GM insolvency.

According to previous statements, Magna's consortium plans an initial investment around EUR700 million. Under the plan, which is backed by Opel's works council, GM would retain a 35% stake in the company. Sberbank would take a 35% stake as well, with Magna holding 20% and Opel's employees with 10%.

German Economy Minister Theodor zu Guttenberg said he arrived at a different risk evaluation, but added he supports the deal and will help to see it completed.

A press conference has been scheduled for Saturday at 8:00 a.m. GMT to explain further details of the Opel deal, Finance Minister Steinbrueck said.

-By Christoph Rauwald and Klaus Brune, Dow Jones Newswires; +49 69 29 725 512; christoph.rauwald@dowjones.com