A statement of intent is to be drawn up by three local authorities to ensure that the redevelopment of MG Rover's Longbridge site has the maximum regeneration impact.

The proposal is contained in a report due before Birmingham City Council's cabinet on Monday and Bromsgrove District Council and Worcestershire County Council are also expected to approve the move.

The statement will set out the councils' aspirations for the site and what type of development will be acceptable.

Birmingham's cabinet member for regeneration Councillor Ken Hardeman said: "This is possibly the largest and strategically most significant development opportunity in the West Midlands for many years. It has the potential to have a transformational impact on the city-region economy and could be a catalyst for the social, economic and environmental revitalisation of south-west Birmingham and north Worcestershire. This site will attract international interest and it essential that we have guidelines in place to ensure that all development on the site is geared to generating jobs, regenerating the local area and boosting the regional economy." The principal land-owners at Longbridge, St Modwen and the regional development agency, are being invited to play a role in preparing the statement of intent.

Coun Hardeman (Con Brandwood) added: "The next steps are to establish how much motor manufacturing will remain on site and then progressing a masterplanning exercise and the formal adoption of an area action plan.

"We are taking steps to get this under way and everything we do will be in partnership with local residents and landowners."

Shadow Local Government Secretary Caroline Spelman, whose Meriden constituency is near the Longbridge plant, said: "Many of my constituents were hit very hard by the closure of the Rover plant at Longbridge.

"We must salvage whatever we can from this sad event, and ensure that any redevelopment pushes forward the social and economic regeneration of the area."