Gordon Brown, the British chancellor, yesterday raised expectations of a deal between Shanghai Automotive Industry Corporation (SAIC) and MG Rover, saying he hoped the UK car maker would "soon" sign a £1 billion (€1.45 billion) joint venture with the Chinese company.

During a three-day visit to China Mr Brown expressed optimism about the prospects for an agreement between the two car makers, which would secure 6,000 jobs at the British company's plant in Longbridge, Birmingham.

Mr Brown is expected to lobby in support of the joint venture at a meeting in Beijing today with Mr Ma Kai, head of the powerful National Development and Reform Commission, the top economic policy-making body in Beijing, which must approve foreign investments by state-owned companies.

Despite the British pressure, however, the deal may not be signed this month or next, suggesting that an agreement could be delayed until close to the date of Britain's general election, expected in May.

State regulators in Shanghai and Beijing have being resisting pressure to come to a quick decision because of concerns about Rover's decision to reveal that it was in talks with SAIC.

The regulators appear to have been angered by Rover's move.

Far from accelerating the approval process, the pressure generated by the disclosure has contributed to delays in securing the regulatory green light.