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E34 525i Reverse Lights not working!



My E34 525i (1990 - M20) has got this weird problem. My car is a 5 speed
manual and when I slide the the gear stick to the
left (haven't engaged yet) to engage the Reverse gear, the reverse light
comes on but as soon as I push it up into gear (slide gear
left and up)the reverse light goes off!. I checked the reverse light switch
at the bottom of the car and its works fine and its properly
screwed in.

According to my mechanic it doesn't seem like the reverse light switch
problem as he tried other switches and the same
problem occured. He suspects that there may be some problem with the gear
box itself and recommended a gear box overhaul.
Anyone come across this problem before and what is the remedy?. Don't want
to spend unnecessary $$$ to overhaul the g/box
just to get the reverse light working.

TIA.

Eugene
E34 525i

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