DaimlerChrysler AG and Mitsubishi Motors Corp. of Japan have formally agreed on a capital tieup, auto industry sources said Saturday night.

The agreement was reached in a meeting in Germany between DaimlerChrysler Co-Chairman Juergen Schrempp and MMC President Katsuhiko Kawasoe.

DaimlerChrysler, the world's fifth-largest automaker, has agreed with MMC to take a controlling stake in the Japanese automaker, MMC sources said earlier.

The sources said earlier on Wednesday that Mitsubishi and DaimlerChrysler had reached a basic agreement to enter a capital tieup, with the German-American automaker acquiring a 33.4 percent stake in the Japanese firm.

The move will effectively put MMC under the control of DaimlerChrysler.