Dongfeng Motor Corp - China's second-largest automaker - may become PSA Peugeot Citroen's top shareholder if Dongfeng's plans to buy a 30 percent stake in the French company via a 10 billion yuan ($1.63 billion) direct investment come to fruition.

China Business News, reported on Tuesday that insiders from Dongfeng had confirmed that the company was in talks with the struggling French automaker to acquire a 30 percent stake.

The report quoted an anonymous insider as saying that the discussion was still in an initial stage, with many uncertainties in the future.