Up to 4,000 jobs will be created in Coventry after Jaguar sold its historic Browns Lane home.
Delamar, a modular construction firm, will invest about £200 million to turn the site, which ceased car production last year, into a state-of-the-art factory producing off-site building units.
The current 400 staff who work at Browns Lane will be transferred to Jaguar's design and development centre at Whitley, where about 2,000 more jobs will be created at a new 70-acre science and business park following a deal between Jaguar, Coventry council and developer St Modwen.
The new site will also house Jaguar's Veneer Manufacturing Centre, along with a new multi-brand customer care centre, with other companies encouraged to join the scheme in the coming months.
Geoff Polites, chief executive of Jaguar and Land Rover, said: "This is a win, win, win situation. It's a win for the city of Coventry because Browns Lane will remain a key manufacturing location and will create many new jobs for the area.
"It's a win for Whitley because hundreds of skilled new jobs and new technologies will come to the new Science and Business Park, not only for Jaguar but for other potential employers as well.
"It is a win for Jaguar because it takes us another important step forward in our business recovery.
"There are no plans to move away from Coventry. Jaguar is in Coventry, Jaguar is in Britain, that's where we intend to stay."
Councillor Ken Taylor (Con Earlsdon), leader of Coventry Council, said he had feared that with the end of manufacturing at Browns Lane, the carmaker would leave but this had been allayed by yesterday's announcement.
He said: "Jaguar has demonstrated great support for the people of Coventry by encour-aging the return of manufacturing jobs to Browns Lane and the joint development of the high tech Whitley Science and Business Park."