(Releads with company as source, adds comment)
BRUSSELS, Jan 28 (Reuters) - Germany has withdrawn its application for European Union approval for a 52 million euro aid package to DaimlerChrysler , the car maker said on Tuesday, but added that its plans were still on track.
The European Commission, the bloc's executive arm which polices state aid, said it had ceased its probe into the aid after Germany notified it that the package had been withdrawn.
"The only thing I can confirm is it is true that the German government has withdrawn this application, but this has happened in close coordination with the senate in Berlin and with the company, of course," a DaimlerChrysler spokesman said.
"Our plans stand," he said. He declined further comment.
The Commission said in October it was investigating Germany's plan to grant the regional aid to a DaimlerChrysler investment in Berlin, which it suspected was illegal state aid.
The planned aid was part of a 200 million euro investment in a new factory in Berlin, which the Commission said aimed to create 729 permanent jobs.
"After the Commission decided to open the state aid procedure on October 9 last year Germany decided to withdraw the notification," a spokesman for European Competition Commissioner Mario Monti told Reuters.
The Commission would soon announce in the EU's Official Journal that the investigation had been terminated, he added. (Additional reporting by Jan Dahinten in Frankfurt)