VW's board is set to formally approve its merger with Porsche later this week.
Although the merger has long been anticipated, VW's board will sign-off legal documents outlining the takeover. The documents are said to be thousands of pages long.
The owners of Porsche, which has been weakened by mounting debt, will then sign-off the documents, kick-starting the merger of the companies.
This will begin with VW buying a minority stake in the Porsche sports car business, and extend to be a full merger by 2011.