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The supervisory board meeting to approve a new leadership structure will now be held Thursday instead of Friday, one source told Reuters.

As part of what could be the biggest shake-up at Volkswagen in a decade, Chief Executive Matthias Mueller is due to be replaced by Herbert Diess, head of VW's core autos brand, who has repeatedly clashed with unions over cost cuts.

Mueller, 64, took over suddenly in 2015 when predecessor Martin Winterkorn fell victim to the company's scandal over cars rigged to cheat on diesel emissions tests.

64-year-old Mr Mueller, always a reluctant CEO who had grown tired of the regular grillings by board members, responded during the talks by signalling he was prepared to step aside, they said. VW has paid more than $30 billion in fines for the scandal, but the company maintained plans to expand sales in the USA despite suffering sales declines.

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Mr Osborn-Brooks was arrested on suspicion of murder and released on bail, but was told on Friday that no action would be taken. The pensioner's arrest provoked an outcry from neighbours and an online fundraising campaign has gathered thousands of pounds.

Diess, a former BMW executive who joined VW two months before the emissions cheating came to light, pledged from the beginning to pursue new technology while reining in spending growth.

Volkswagen said in a short statement that board of directors Chairman Hans Dieter Poetsch was in discussions with top managers about their duties and that the result was "currently open". Its profit margin climbed to 7.4 per cent of sales past year from 6 per cent in 2015, when the crisis hit.

Volkswagen has replaced its chief executive in a sudden management overhaul aimed at making a clean break from its diesel scandal and preparing the automaker for major industry changes. Porsche said in a separate release that any changes at VW would be reflected in its management. But a replacement of the CEO could also signal that some of the primary shareholders and board members are perhaps unhappy with the direction of the company.

Mr Mueller - a veteran of the German vehicle company - was promoted from his role heading the Porsche division to take the job heading the entire group.

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As well as Volkswagen, the German company also owns several other brands including Audi and Porsche.

While Mr Mueller is a VW veteran, at times he cuts an uneasy figure in the top job, which required him to manage the often contradictory demands of angry vehicle owners, disgruntled investors, well-organised workers, as well as state officials with their own political agendas.

The potential restructuring was first reported by German magazine Der Spiegel.

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