Canada has decided to offer 3.3 billion Canadian dollars (US$2.6 billion) to bailout its ailing auto sector on conditions that a similar package is approved in the United States, reports said yesterday.

Canada's federal government and Ontario provincial government have agreed to provide the fund in proportion, the report quoted Industry Minister Tony Clement as saying.

Speaking to reporters in Toronto late Friday, Clement said the deal was contingent on GM, Ford and Chrysler working together with parts suppliers and unions for a long-term solution for their industry, as well as the American proposal going forward.

"Governments can decide to help, but these decisions will only be made in the best interests of the taxpayer," he said.

The minister also said the Canadian government expects US President George W. Bush to announce something "very soon."

The US bailout appeared to have died late Thursday night after hours of heated negotiations between lawmakers, representatives from automakers and unions. But lawmakers said they still hope an agreement on the Democratic- and White House-backed plan could be reached.

The Canadian subsidiaries of the Detroit Big Three automakers had asked Ottawa and Ontario for financial aid that could total as much as 6 billion Canadian dollars.