UPDATE 4-Opel chief leaves following failed deal

* GM Europe chief Forster to leave after Opel reversal

* GM's Nick Reilly set to lead Opel overhaul-source

* GM's Lutz to chair Opel supervisory board-source (Recasts with GM confirmation)

By Christiaan Hetzner and Angelika Gruber

FRANKFURT, Nov 6 (Reuters) - General Motors Co [GM.UL] said on Friday the head of its European operations, Carl-Peter Forster, is leaving, three days after the automaker's decision to scrap a planned sale of its Opel unit.

Forster, the son of a German diplomat and a former BMW (BMWG.DE) executive, had been widely expected to run the independent Opel that would have been split from GM in the sale of a controlling Opel stake to a Russian-backed group led by Canadian auto parts company Magna International Inc (MGa.TO)

Forster's departure marks the first high-profile exit at Opel since GM's board reversed course and said the automaker would keep the European unit and raise funds to restructure Opel on its own.

That decision touched off a storm of protests in Germany, where Magna had been seen as the best chance to preserve jobs.

Nick Reilly, current head of GM's international operations, is set to lead GM's looming reorganization of Opel, a person briefed on the plan said.