Indian manufacturer Tata's proposed push into the West Midlands could extend into telecommunications as well as car making, industry sources said yesterday.

And they described the first stage launch of a research and development centre as "pretty much a done deal".

The confidence follows a week long trip by John Edwards, chief executive of regional development agency Advantage West Midlands, to Mumbai to woo the company.

Tata already has a presence at the University of Warwick - its planned expansion could eventually create 3,500 new jobs.

It is believed to be considering a former Marconi site at Ansty in Coventry.

But the company will only move if it gets grant aid from the Department of Trade and Industry.

The source said: "We are talking about a really big investment by Tata. They are looking to make cars in the West Midlands and possibly even getting into telecommunications.

"The first step is more or less agreed - it is a case of persuading them to go ahead with the fourth, fifth and sixth steps.

"They are looking to get into Europe and want the UK and the West Midlands to do it. The authorities are doing everything they can to make it happen."

It is understood that Mr Edwards was exploring options with Tata, assessing their needs and explaining how AWM might help.

AWM would only confirm that the visit took place at the end of last month and that it had gone well.

A spokesman said: "He was there to discuss investment opportunities in the West Midlands."

A decision is expected in February.