WRAPUP 1-Chrysler lenders, gov't set deal framework-sources

* Gov't, Chrysler lenders have deal in principle-sources

* Deal would cut $6.9 bln debt in exchange for $2 bln cash

* Lenders doing due-diligence on deal-source

* Fiat says decision on alliance due Thursday

By Poornima Gupta and Caren Bohan

DETROIT/WASHINGTON, April 28 (Reuters) - The U.S. Treasury and Chrysler LLC's secured lenders have reached the framework of a deal that would wipe out $6.9 billion of the automaker's debt in exchange for $2 billion in cash, people with knowledge of the talks said on Tuesday.

Should this deal be approved, it would mark a major step toward improving Chrysler's financial picture. However, the tentative deal does not automatically guarantee that the automaker will avoid bankruptcy as it heads toward the U.S. government deadline to restructure.

Chrysler's lenders are currently doing due diligence on the terms of the deal and it has yet to be approved by all of the debt holders, one of the people said.

"This is a very significant concession that these banks made," a second source said, adding that the deal would not provide lenders with equity in the company.