Carmaking could return to one of the British motor industry's most-famous plant sites in a move that will create hundreds of new jobs.
Automotive company CPP is purchasing Browns Lane in Coventry, a former production site of luxury car company Jaguar.
CPP, which already owns off-road vehicle company Bowler, is hoping to conclude a deal with sports car company Spyker.
CPP will submit planning applications before the end of this year and plans to bring all its existing Coventry facilities on to the single, 23-acre Browns Lane site within five years.
Jaguar moved from Browns Lane in 2005, with its production now based at Castle Bromwich near Birmingham.
CPP is buying the Browns Lane site from regional development agency Advantage West Midlands.
CPP founder and co-owner Brendan O'Toole said: "This is a decisive moment in CPP's strategy to cement Coventry's reputation as a world-class centre of automotive excellence."
CPP co-owner Vladimir Antonov said: "The Browns Lane redevelopment demonstrates CPP's commitment to remaining in the heart of Coventry where it has access to the city's rich automotive skills base.
"It will help CPP to create hundreds of new jobs, establish advanced new facilities and is a major investment into the economy of the city and the surrounding region."
John Mutton, leader of Coventry City Council, said: "This is a massive boost for the city and the local economy - creating new jobs for Coventry people is a key priority for the council and I'm delighted we've been able to play a part in bringing car production back to Browns Lane."
