Berlin  - The supervisory board of German carmaker Porsche approved a 5-billion-euro capital increase.

The announcement early Thursday came after a several-hour closed- door meeting to reach an agreement on the future of the iconic sports car maker.

Porsche chief Wendelin Wiedeking had turned to the carmaker's family owners for help in refinancing the debt through a capital injection of up to 7.1 billion dollars. The infusion was seen as a precondition for a merger with Volkswagen. (dpa)