Italian Prime Minister Silvio Berlusconi Tuesday said he was optimistic that a deal would be reached between the country's car maker Fiat SpA (FIATY) and Germany's Opel.

"I think so," Berlusconi said during a show on state television when asked if a deal between the two auto makers would take place. "The news I have is that the Germans are looking at this deal with great interest. It would be a dream for all Italians if it happened."

After taking a stake in Chrysler last week, Fiat has said it is looking to spin off its car unit and merge it with the European operations of General Motors Corp. (GM), which include Opel, as well as with Chrysler, to create a car giant with EUR80 billion in annual revenue.

-By Luca Di Leo, Dow Jones Newswires; +39-06-697-66921; luca.dileo@dowjones.com