A new dealership and test drive facility for luxury car brand Mercedes-Benz will create hundreds of new jobs if the project is given the green light.
Negotiations have started for LSH Auto UK to take a five-acre plot of land south of the A5 bypass by Ventura Park, in Tamworth.
The land is owned by developer Aucott and Tamworth Borough Council will work with both firms on the design of the property and the wider development scheme.
Planning permission is already in place for development aimed at creating employment, including a new access road off the A5 slip road.
A detailed planning application is due to be submitted in the autumn and the whole site is expected to create 400 jobs.
Coun Steve Claymore, from Tamworth Borough Council, said: "This investment is a significant coup for Tamworth and increases what is already a healthy confidence in the town as a perfectly placed investment opportunity.
"This should be just the first phase of development on land south of the A5 bypass which we hope will attract further inward investment to the town to become a major employment site and cement Tamworth's position as a perfect place to do business on a global scale."