According to a report by the online edition of newspaper Večer, Alpe Adria Green decided not to file a complaint against an approval issued by the Environment Agency in early August.

The environmental approval is the final condition for the Austrian-Canadian automotive group to get a building permit for what would be one of the biggest greenfield investments in Slovenia.

Magna has threatened it will move the project to Hungary unless it obtained the building permit by the end of September.

Despite voting to appeal against the environmental consent last week, the management board of Alpe Adria Green opted against the step in a re-vote.

Unofficial information indicates that Alpe Adria Green and the investor have agreed on a protocol sorting out the environmental concerns, which is supported by a majority of the NGO's board.

Alpe Adria Green had Vojko Bernard was unavailable for comment on Sunday.

The news portal Siol.net has reported that that it will become clear on Monday weather locals from the neighbouring community of Miklavž na Dravskem will appeal with the Administrative Court over the matter.

The government has pledged to provide Magna with a EUR 18.61m subsidy to build a EUR 146.4m paint shop in Hoče which is to create 400 new jobs.