Several news agencies have reported that the German manufacturer was given the go-ahead from the Economy Ministry earlier this month.

Reuters quoted a spokesperson for the ministry as saying: "The decision on Heidelberger Druck's application (is) positive." According to German news magazine Spiegel, Heidelberg was aiming to secure a guarantee to the tune of €400m (£349m) and a loan of €300m.

However, PrintWeek understands that a final decision on the aid package is yet to be reached.

Heidelberg declined to comment.

The speculated request for financial support comes after the group reported a large drop in orders for the financial year 2008/2009 (to 31 March of this year). Sales were down 18% to €2.99bn, down from €3.67bn and incoming orders were also down by 20%.

The company has embarked on a major cost-cutting initative. Around 1,400 roles have been cut since the start of the financial year 2008/2009, with overall employee levels standing at 18,926 at the beginning of April. It is thought the total figure will reach 5,000 cuts in total.