The sale of General Motors (GM), the bankrupt US car making giant, to the US Government has been approved by a judge.

Judge Robert Gerber, of the US bankruptcy court in Manhattan, said the sale was necessary to “prevent the death of the patient on the operating table.”

Under the rescue plan, GM’s core business will emerge under state ownership while the unprofitable divisions will be liquidated. GM Europe, which includes Britain’s Vauxhall, is likely to be sold to Magna, the Canadian components maker.

In his opinion, Judge Gerber wrote that GM could not survive without Government funding that will expire in “a matter of days”.

He added: “As nobody can seriously dispute, the only alternative to an immediate sale is liquidation - a disastrous result for GM’s creditors, its employees, the suppliers who depend on GM for their own existence, and the communities in which GM operates”.

The US Government has said that the new GM entity could be floated as soon as next year. The judge issued a four-day stay on the order to allow time for appeals.

The decision came as Carl-Peter Forster, the president of GM Europe, said that he expected to conclude a deal with Magna soon.

But Karl-Theodor zu Guttenberg, the German economy minister, struck a more cautious tone in an interview published this morning.

He told a German newspaper: “I acknowledge Magna’s ambitious goal, wanting to sign a contract by mid-July.

“However, there still seem to be some unanswered questions.”

A week ago Lord Mandelson, the business secretary, said a sale to Magna was "pretty likely".

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