The United Auto Workers union approved a modified contract with General Motors that should clear the way for the troubled automaker to declare bankruptcy soon.

74 percent of the union's members voted in favor of the new contract, which includes cost-cutting concessions to GM but will give the union a large equity stake in the reconstituted company.

The company will save $1.3 billion a year under the new plan, the UAW told the Detroit Free Press.

The agreement marks a series of agreements GM has made in recent days and weeks with the union, its bondholders, and other parties in order to file for an expected bankruptcy. The deadline for GM to submit new restructuring plans to the administration falls on Monday.