Troops returning to the UK from Germany are to be stationed in the West Midlands, in a major boost to the region's economy.

About 2,600 troops and their families and dependants are to move to Cosford, in Shropshire, the Ministry of Defence has announced.

The decision brings a proposed "super-garrison" in the region a step closer.

The army could eventually reassign around 8,500 troops currently based overseas, and is considering using the former RAF base at Cosford to house them. The base housed the RAF's school of technical training and employed around 2,500 people, before the positions were moved to a new training facility in Wales.

The decision was seen as a major blow to Shropshire's economy. MPs and local councils had campaigned for the new national training centre to be built in Cosford, but were unsuccessful.

Ministers last night said the proposed move of army units to Cosford showed that the Ministry of Defence remained committed to the area.

Armed Forces Minister Bob Ainsworth (Lab Coventry North East) said: "I am delighted to announce that Cosford has been chosen as our preferred site to base both 1 Signal Brigade and 102 Logistics Brigade when they return from Germany.

"I am proud to re-affirm our commitment to the Cosford community. The historic presence of Defence in the Cosford area will continue to provide benefits to the local community and to the West Midlands.

"Redevelopment at Cosford will involve the creation of Civil Service jobs and further openings with local contractors which we hope will provide great opportunities for the people of Cosford.

"We will now draw up detailed plans and undertake wide consultation with all of the Cosford's stake-holders including local authorities, health, education and welfare providers as well as the Trades Unions and our own Service personnel."

Shropshire MP Philip Dunne (Con Ludlow) said: "This looks like a very positive development for Shropshire. I am very pleased that we have some clarity about what the future holds for the RAF Cosford site." The move of the two brigades is expected to be completed by 2014 and will see approximately 2,600 troops and their families and dependants move to Cosford.

The presence of such a significant number of troops may pave the way for a West Midlands "super garrison" in the future, the Ministry of Defence said.

The Cosford plan is part of Operation Borona, a programme to move 3,600 British troops based in Germany to the UK.

The programme is subject to financial approval, but Defence Ministers have given provisional approval for the two units and HQ Allied Rapid Reaction Corps to relocate to the UK between 2009 and 2014.

The site currently occupied by the RAF at Innsworth, Gloucestershire, has been selected as the most suitable for HQ ARRC.

RAF Cosford was chosen to house a new school of technical training in the 1930s, with the first air-crew and technicians arriving in 1938.

Cosford played a vital role during the Second World War, training radar technicians and engine and airframe fitters, including French, Poles, Czechs and Romanians.

The base continued to be used during the Cold War, as personnel were trained to service modern jet aircraft.