GM Chairman and CEO Rick Wagoner may be getting close to the deal he's been seeking from the United Auto Workers to cut health care costs.

NEW YORK (CNN/Money) - General Motors Corp. and the United Auto Workers appear to be nearing a deal to trim about $1 billion annually off the nearly $6 billion the auto manufacturer is expected to spend this year on health-care costs, according to a published report.

The Detroit News reported that talks between the sides intensified last weekend in advance of GM's board meeting Tuesday, in part because GM officials signaled they want a framework to present to GM's directors.

Shares of Dow component GM (Research) rose 37 cents, or 1.2 percent, to $30.45 in pre-market trading on Inet following the report.

GM Chairman and CEO Rick Wagoner has said winning health-care cost savings are crucial to the embattled auto manufacturer's efforts to stem losses in its core North American auto unit.

The auto manufacturer has seen health-care costs soar not only to cover active employees and their families, but also hundreds of thousands of retirees and their dependents.

The Center for Automotive Research estimates that retiree health-care costs alone add nearly $1,000 per vehicle to the cost of a vehicle made by GM, Ford Motor Co. (Research) or Chrysler Group, compared to cars and light trucks made for Japanese auto manufacturers at their U.S. plants.

But union officials have not been willing to make changes in the existing labor contract, which runs through September 2007. But union officials have said they're willing to discuss ways to save the auto manufacturer money that don't require an early opening of the contract.

The newspaper does not report any details of a possible agreement, and it said that officials familiar with the talks cautioned that a deal is not certain. But the report is one of the more hopeful signs for GM and its shareholders after months of little progress being reported.

"They worked all weekend," said a senior industry executive familiar with the talks told the newspaper. "They've been hammering at it hard, and they're still hammering at it."

The newspaper reports that the deal may increase co-pays for prescription drugs and perhaps institute cost sharing of monthly premiums by union members and retirees.

The GM-UAW talks "are not something we will be talking about until we're ready," Tom Kowaleski, GM's chief spokesman, told the newspaper. "We're not going to talk about time periods; we're not going to talk about guidance -- close or not close." UAW officials also declined to comment.

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For a look at the sharp drop in September sales at GM, click here.

For a look at a debate over the state of GM pension funds, click here.

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