Indian industrial giant Tata will be named as the preferred bidder for Jaguar and Land Rover on Friday.
The group has had its £1 billion bid accepted by Ford, which is selling the luxury carmakers which together employ 13,000 people across the Midlands.
The firm has beaten off competition from rival Indian firm Mahindra and Mahindra and private equity group One Equity Partners. Final details are expected to be tied up in the next six weeks before the sale is completed.
Sources at Land Rover said: "It is definitely Tata. There is one final meeting and so long as there is no last minute hitches, which are not expected, then an announcement will be made on Friday."
Officials are coming to the UK from India for the announcement. Staff and the government are all supportive of the deal, the source added, while it will ensure the companies and the jobs stay in the West Midlands.
The deal was welcomed by union leaders. Des Quinn, industry officer for the Transport and General Workers' Union section of Unite, said: "We cautiously welcome this development, although the devil will be in the detail.
"We think the Tata bid is in the best interests of our members. They come from a manufacturing background, and the experience of other people they have taken over has been good.
"They allow the management to manage and are investing in it. They are cash rich and they can afford the price, as well as invest in the future.
"Generally we think they are the better buyer for Jaguar and Land Rover."
Tata bought steelmaker Corus for £4.3 billion last year, while the firm also owns Tetley Tea in the UK. Mr Quinn added that the Mahindra bid fell down becasue of its links to private equity – with the Indian firm working with Apollo.
"When a private equity firm buys a company, the cost of buying it often goes onto the companies books. If anything then goes wrong how do you refinance the business?"
