(Corrects to remove incorrect Reuters instrument code in first paragraph; also repeats to additional Reuters clients)
AMSTERDAM, April 22 (Reuters) - Volvo has had talks with the Swedish government about possibly bidding for Saab, the Dutch Telegraaf reported on Friday, citing unnamed sources close to Volvo.
The Swedish government, which last week gave conditional backing to free up cash for the struggling Saab business, is reportedly talking to Volvo Cars about Volvo's possible interest in bidding for Saab. Volvo is owned by China's Geely.
Saab has run into a cash crunch in its first year of ownership by Dutch niche carmaker Spyker SPYKR.AS after its 2010 sales fell short of forecasts.
Earlier this week Saab's Chief Executive Officer Victor Muller said that the Swedish car maker is negotiating with a wide range of Chinese car makers about a tie-up.
Spyker was unavailable for comment. (Reporting by Roberta B. Cowan; Editing by Jon Loades-Carter)