Volkswagen's budget brand is set to get the green light as Germany's Manager Magazin is reporting the company has solved the cost issues that have plagued the entry-level model.

Details are limited but the magazine is reporting senior executives will approve the budget brand in a "few weeks" and the supervisory board will likely sign off on the plan this summer.

The report goes on to say the first model is expected to be launched in late 2016 or early 2017 with base price €7,500 ($10,330 / £6,260) or less. The car will reportedly be developed and built with one of Volkswagen's Chinese partners - possibly FAW or SAIC.

The budget brand will be launched in China but could eventually be offered in other emerging markets like India. If everything goes according to plan, the budget brand will sell 500,000 cars annually.

Gallery: Volkswagen budget brand back on track, could be approved in a few weeks - report

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