Updated from Monday, Feb. 16 Liberty Media Corp. is close to a deal that would save Sirius XM (SIRI) - Get Sirius XM Holdings, Inc. Report from bankruptcy, according to a published media report.

Liberty Media was near a deal late Monday to invest in Sirius XM in return for just under half of the company, the

Wall Street Journal

reports, citing people familiar with the matter.

Under the proposed agreement, Liberty would invest several hundred million dollars in Sirius in two stages and eventually control about half of the company, the people said.

Both sides were still negotiating final details, the report said, citing people familiar with the matter. But Liberty Media appeared as if it would edge out media tycoon Charles Ergen for a significant stake in Sirius XM, the report added. Liberty Media and Sirius XM hoped to announce a deal before the opening of the New York stock market Tuesday, the report said.

The

New York Times

reports Malone is to pay about $265 million now -- which will be used to pay off the $175 million that Sirius XM owes Ergen -- as well as make a second payment of up to about $200 million in the fall to help pay off about another $400 million that Sirius will owe.

The deal also would allow Mel Karmazin, CEO of Sirius XM, to save his job, the

Times

reports.

It was reported by the

Journal

on Monday that a group of Sirius XM creditors says it is ready to try to oust Karmazin and other top executives if the troubled satellite radio company files for bankruptcy protection.

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Liberty Media controls

DirecTV

(DTV)

, the nation's leading satellite-TV operator.

Sirius XM shares closed Friday up 3 cents at 10 cents. U.S. stock markets were closed Monday in observance of Presidents' Day.

Liberty Media has three tracking stocks:

Liberty Interactive

(LINTA)

,

Liberty Capital

(LCAPA)

and

Liberty Entertainment

(LMDIA)

.

This article was written by a staff member of TheStreet.com.