TORONTO - The head of the Canadian Auto Workers union says he hopes to reach a new labour agreement with Chrysler soon.

Ken Lewenza says both Chrysler and the government have told the CAW that a deal needs to be reached this week, and there's "a great desire" to wrap up negotiations on Wednesday.

He says CAW members still have to ratify the deal and Chrysler has to complete its restructuring plan before the end of the month, and there's not much time left.

Lewenza said the bargaining is the toughest he's ever experienced.

The two parties started negotiations again on Monday after an earlier round of talks ended without an agreement.

If Chrysler fails to cement an alliance with Fiat and reach deals with its unions in Canada and the United States, it won't receive long-term government assistance and will likely be forced to file for bankruptcy protection or liquidate.