China Southern Airlines' board has approved a plan for the carrier to sell its 50% stake in MTU Zhuhai.
The Guangzhou-based carrier announced in October that it will sell the stake in the Zhuhai engine maintenance, repair and overhaul firm to its parent China Southern Air Holding for 1.61 billion yuan ($235.4 million).
MTU Zhuhai is a joint venture between China Southern and Germany's MTU Aero Engines.
The deadline to finalise the sale has been extended from 31 December 2009 to 28 February 2010, says the airline, which adds that more time is needed to fulfill certain conditions under the sale agreement.
If the agreement is not concluded by the new deadline, China Southern and its parent may negotiate to terminate the sale at no cost to each other, adds the carrier.