Volkswagen said would now seek a so-called domination and profit and loss transfer agreement, a move to give it full strategic and financial control over MAN, in which it has a 75.03 percent stake.
"The planned step is a further milestone on the road to creating an integrated commercial vehicles group," the company said in a statement.
The move shows that Volkswagen's appetite for consolidating a global empire which includes motorcycles, cars and trucks, remains undiminished.
In November, Volkswagen topped up its war chest by raising 2.5 billion euros which it said would help strengthen its balance sheet following the purchase of Italian motorcycle company Ducati, and Porsche sports cars.
Volkswagen's chairman Ferdinand Piech has been keen to accelerate cooperation between the different truck brands in the Volkswagen stable including Scania SCVb.ST and MAN, even as truck executive downplayed expectations for full integration.
In July, MAN's Chief Financial Officer Frank Lutz said a domination agreement by Volkswagen would not bring any additional synergies.
In September Volkswagen board member Leif Oestling signalled that closer integration between the different truck brands was unlikely. At the time he said Volkswagen's commercial vehicles brands Scania, MAN and VW Commercial vehicles will "coordinate rather than integrate" as they brace for a slowdown in Europe, Brazil and China.
Earlier on Wednesday a source told Reuters that Volkswagen is looking to end its commercial vehicles partnership with Daimler (DAIGn.DE), as VW seeks closer ties with MAN.
($1 = 0.7667 euros)
Reporting by Harro ten Wolde, Edward Taylor and Maria Sheahan; Editing by Victoria Bryan