Washington - US President Barack Obama suggested last-minute talks to save Chrysler LLC from bankruptcy were yielding results, saying he was "very hopeful" Wednesday night that a deal could be reached with creditors.

"The details have not yet been finalized," Obama said of the government-brokered talks. "But I'm feeling more optimistic than I was" about a resolution.

"I am actually very hopeful .. that we can see a resolution that maintains a viable Chrysler auto company out there," he said in a news conference at the White House.

Chrysler is running up against a Thursday deadline to prove its long-term viability, or risk losing the 4.5 billion dollars it has received in emergency government loans. Chrysler is also working on a merger with Italian carmaker Fiat Spa.

Chrysler's larger creditors including JP Morgan Chase & Co and Citigroup Inc have tentatively agreed to a proposal to accept 2 billion dollars in cash in return for wiping out 6.9 billion dollars in debt. The company is still waiting to hear from its smaller lenders.

If Chrysler did have to file for bankruptcy protection, Obama said it would be a "quick type of bankruptcy" that allows the firm to restructure its debt and re-emerge on the other side in a stronger position. (dpa)