A deal is expected to be done this week to save the UK's largest, oldest driving school, the British School of Motoring (BSM).
For a nominal undisclosed sum, the AA will take on BSM's liabilities of several million pounds and double the amount of instructors. Despite having its own driving school, the BSM brand will be kept.
BSM was bought by its management from the RAC for £10m in 2009, but has struggled in the financial downturn. Things are thought to have got particularly bad this month, as the company has been unable to pay staff wages and owes money on cars and properties.