Peugeot managers are to meet Government officials for discussions about the future of the manufacturer's Ryton plant in Coventry.

Trade Minister Jacqui Smith, MP for Redditch, revealed that talks had been arranged when she met Ryton workers, union leaders and Coventry MPs in Westminster yesterday.

Jean-Martin Folz, chief executive of PSA Peugeot CitroIn, is expected to brief senior officials from the DTI in Paris.

It follows the car manufacturer's announcement last month to axe the plant's weekend shift, with the loss of 850 jobs, just a year after the night shift was ended at the expense of 700 workers.

Unions and MPs have said they are willing to accept the decision, but are concerned that further job losses could follow.

MPs Jim Cunningham (Lab Coventry South) and Geoffrey Robinson ( Lab Coventry North West) have raised concerns in the House of Commons and asked Ministers to seek assurances that Ryton will not close altogether.

Mr Folz has promised the Peugeot 206 model will continue production at Ryton until at least 2010.

However the MPs fear that the forthcoming introduction of the 207 model will hit sales of the 206, and production could end sooner.

Representatives of unions Amicus and the T&G attended yesterday's meeting.

Mr Robinson said: "The DTI are holding discussions with top-level managers in Paris.

"We will continue to press for assurances about longterm commitments to Ryton, which is what the meeting was about."