Geely is being tipped to sign a deal 'imminently' to buy Volvo from Ford.
A Volvo spokesman told the Reuters news agency the deal could be reached on Sunday, "but it's not set in stone yet", he cautioned.
Geely Chairman Li Shufu travelled to Sweden on Friday to finalise the deal, which will be funded by financing from banks in China, the USA and Europe, including low-interest loans guaranteed by the governments of Sweden and Belgium.
Geely's Hong Kong-listed unit, Geely Automobile Holdings Ltd., and some Chinese local governments will also invest in the deal, according to reports.
Analysts have estimated the deal at about $2 billion (£1.3bn).
Chinese car maker Geely is seeking to use Volvo to secure a foothold in Europe as part of its expansion plans.