Porsche and Volkswagen have broadly agreed on sale terms, and the name Auto Union may be resurrected, Reuters reports.

The new entity could be led by Volkswagen CEO Martin Winterkorn, and Porsche would retain some independence--similar to Audi's setup within the Volkswagen Group. Porsche would be the 10th brand in the company.

VW would buy up to 49 percent of the Porsche sports-car business, the first step in an integration of the two companies that would be completed in 2011, according to Reuters.

Auto Union is a famous name that dates to the 1930s, and its cars were legendary racers. The company has since evolved into Audi.

The sale is a reversal after Porsche's attempts to take over its much larger rival, VW, failed.