Fiat SpA (F.MI) is ready to meet with the Italian government and labor unions to discuss a plan to create one of the world's largest car companies by merging its auto unit with some key General Motor Corp. (GM) assets, the government said Friday.

Fiat Chief Executive Sergio Marchionne said in a letter replying to Industry Minister Claudio Scajola that he's open to hold the meeting once negotiations with GM are clear, Scajola's office said in a statement.

The Italian government last week signaled it would continue to help Fiat as long as the carmaker safeguards jobs at home by keeping plants open while it seeks to expand internationally.

Fiat plans to retool two plants in Italy as part of a plan to buy GM's operations in Europe - including Germany's Adam Opel GmbH, Sweden's Saab and the U.K.'s Vauxhall - as well as those in Latin America and South Africa, and merge them with its auto unit.

-By Luca Di Leo, Dow Jones Newswires; +39 06 69766921; luca.dileo@dowjones.com