CHICAGO (Xinhua): General Motors Corp. CEO Rick Wagoner will step down immediately as chairman and chief executive of the struggling U.S. auto giant, sources said on Sunday.

According to a report by the Wall Street Journal, Mr. Wagoner has agreed to step down as part of an agreement to get a new package of federal aid for the Detroit-based automaker.

A U.S. government official confirmed that Mr. Wagoner was asked to step down by the administration as a pre-condition for the ongoing restructuring within the company.

A company source in Detroit, who asked not to be identified, told Xinhua on the phone that staff of the company were told not to comment on the matter until a formal announcement will be made on March 30. But the source said she believes what was reported will happen.

GM issued a statement on Sunday on U.S. Auto Industry Restructuring Announcement.

The statement said: "We are anticipating an announcement soon from the Administration regarding the restructuring of the U.S. auto industry. We continue to work closely with members of the Task Force and it would not be appropriate for us to speculate on the content of any announcement. "