* American Axle working with law firm Shearman & Sterling

* Options under review include bankruptcy, GM aid-sources

* GM says open to working with troubled suppliers

* American Axle shares close down 8 percent

(Adds American Axle comment, details on GM relationship, GM comment)

By Jui Chakravorty Das and Soyoung Kim

NEW YORK/DETROIT, July 10 (Reuters) - American Axle & Manufacturing Holdings Inc (AXL.N: Quote, Profile, Research) is working with legal advisers as it considers restructuring options including bankruptcy, two people familiar with the matter told Reuters.

The company, a key parts supplier to General Motors Corp GMGMQ.PK, is working with the law firm Shearman & Sterling as it considers debt restructuring options amid depressed auto sales and weak production, according to the sources.

Shares in the supplier fell 8 percent to $1.79.