Volkswagen is likely to complete its full takeover of Porsche this year after clearing key hurdles, according to a German media report.

News weekly Der Spiegel writes in its upcoming issue that VW, which owns 49.9 percent of Porsche, may buy the 50.1-percent stake in the manufacturer of the iconic 911 car for 3.9 billion euros (R40-billion) in 2012. The report cited unnamed VW executives.

Porsche has built up massive debts as it looked to seal a tie-up with VW and Spiegel said two previous obstacles now look surmountable.

Volkswagen will avoid having to pay more than 1-billion euros in taxes for completing the deal before 2014 by creating a holding company to buy and maintain the stake in Porsche, according to the report.

VW would also fulfil Porsche's demands for independence by signing a contract giving the sports car maker control over its investments and models, Spiegel said.

Porsche spectacularly tried to take over VW in 2008 but the attempt failed and the luxury car maker was in turn saved by Volkswagen.

A VW spokesman could not immediately be reached for comment. -Sapa-AFP