Jaguar is believed to be close to clinching a deal to sell its Browns Lane factory in Coventry.
The luxury carmaker is currently ironing out the final details with lawyers before signing an agreement to hand over the site to an unknown bidder.
An announcement is expected next week on the future of the 117-acre site, which ceased car production last year.
It is thought the developer plans to put offices, a factory and a large warehouse on the site, while an end user is also believed to have been identified. But the buyer is not thought to be Delamar, the modular construction firm which pulled out of a move to buy the complex in October.
At present around 500 staff still work at the site at its wood veneer centre and the Jaguar Daimler Heritage Trust. They are expected to move out next year to Jaguar's product development centre at Whitley in Coventry.
A spokesman for Jaguar said: "The objective has been to maintain Browns Lane primarily as a industrial location, and we think that is the intention of the potential purchasers."
The spokesman would not reveal who the buyer was, or how much they had agreed to pay for the site, although it is thought the price would range between #40 million and #50 million.
Louise Bennett, chief executive of the Coventry and Warwickshire Chamber of Commerce, said: "This is promising news. Hopes were high when a deal was announced several months ago and it was a shame when those plans did not come to fruition.
"We are pleased that it now looks as if the Browns Lane site – which has long been a centre of commercial and industrial excellence – could once again be a thriving hub for the city and region.
"We look forward to hearing more of what seem to be exciting plans."
Meanwhile, the transformation of the former MG Rover factory in Birmingham has gathered pace after a supplier of lighting and projection systems to the Rolling Stones agreed to become the first occupants at the redeveloped site.
PRG Europe, which supplies into the entertainment and events industries, has acquired the 157,000 sq ft warehouse at the Cofton Centre, formerly used for MG Rover’s parts distribution.
The company, which employs 75 people in the city, has made a multi-million pound investment in the site, which could lead to further jobs.
It has become the first major occupier there since St Modwen Properties began its regeneration programme which could ultimately create up to 10,000 jobs.
The company, which was formally known as Light + Sound Design plans to move in next year following refurbishments to the warehouse.
David Keighley, managing director of PRG Europe, said: "We have been based in Birmingham for over 20 years, and the lease on our current warehouse, the old bus garage opposite the Blues ground, expires at the end of 2007.
"The Longbridge unit is ideal and this allows us to take the time to refurbish in exactly the way we want it. The site will also enable us to expand the range of services which we are able to offer clients."
Mike Murray of St Modwen Properties, said: "This is the first major occupier to come to Longbridge since our taking over the site and it is fitting that they are the market leaders in an innovative and expanding industry.
"PRG Europe’s decision to invest here provides a boost of confidence for the future regeneration of the area and offers encouragement to other forward-looking companies to follow their lead."
PRG Europe is part of Production Resources Group, an international company which in addition to lighting also provides services in the audio, video and scenery sectors.
As well as its Birmingham facility, PRG Europe has warehouses in Greenford, Middlesex and Croydon, Surrey and this year has supplied its services to clients including The Rolling Stones, Mazda and the London musicals Wicked and Avenue Q.