The aim is to sell some light commercial vehicle production capacity to Toyota, one of the sources said. Another source said PSA would sell the vans at close to margin prices.
The European Commission is worried that the deal may harm competition in small vans in 14 EU countries and Britain. The car makers earlier on Friday submitted their proposal to the EU competition enforcer.
(Reporting by Foo Yun Chee in Brussels and Giulio Piovaccari in Milan)