Jaguar Land Rover is negotiating to secure a £773 million rescue package which could help save thousands of jobs.

The car maker today confirmed that it is in talks with the British government for a £500 million loan which would have to be repaid.

Meanwhile, Jaguar Land Rover has now made a formal application for a €300 million (£273 million) loan from the European Investment Bank (EIB); these funds would be used to fund new more environmentally friendly cars.

While a decision on the European loan is expected from the EIB after its board meeting next Tuesday, Jaguar Land Rover has been given no indication when or even whether it will receive any money from the government.

This could spell bad news for the manufacturer’s 15,000-strong workforce, who have been warned by Ratan Tata, owner of Indian parent company Tata, that jobs could go if the money does not arrive.

A spokesman for Jaguar Land Rover said, “Talks with the government within the framework of the recently announced support package continue and we hope we will see support."