The on-going dispute could come to a close as soon as this weekend, the UAW has said.

In recognition of this development, the union has called off a rally in support of the striking workers that was due to take place in Detroit tomorrow.

The UAW, which represents 3,600 workers at the parts maker, has been on strike against American Axel's five US plants for almost two months.

Protest broke out against American Axel after the company proposed wage cuts in a bid to become more competitive.

The strike has affected 30 plants owned by General Motors, which is American Axle's biggest customer.