The Canadian government is said to be close to securing a deal with carmakers to cut emissions.

The government wants the industry to reduce emissions by 25 per cent from 1995 levels by 2010 under a voluntary agreement.

However ministers have so far resisted demands by environmentalists and opposition parties to impose curbs on major car manufacturers.

"We're now close to signing another voluntary agreement which will reduce (emissions) by more than 25 per cent," the Reuters news agency quoted Canada's natural resources minister, John Efford, as saying.

The move comes as Canada attempts to meet its Kyoto targets, which oblige Ottawa to cut its output of greenhouse gases by six per cent from 1990 levels by 2012.

However Canada's emissions are currently about 20 per cent above 1990 levels and senior government officials say the country has no chance of meeting its Kyoto goals.

Opposition leaders have said that Ottawa should follow California's lead. The US state has told carmakers it wants a 30 per cent cut in emissions by 2016.

"We've got Arnold Schwarzenegger taking a stronger stand on cutting pollution than we have in the Canadian government. This is simply really unacceptable. It means we won't meet our emissions reductions targets," party leader Jack Layton told reporters.

A deal is expected to be struck in the coming weeks.