Nanjing Automobile hopes to launch an "exciting future" for car production in Birmingham when it signs a 33-year lease for part of the former MG Rover factory today.
The Chinese carmaker has been locked in negotiations with property company St Modwen over the right to use the Longbridge site.
But with the current arrangement due to end today, a deal has been struck for Nanjing to occupy 105 acres of the 370-acre location.
The deal, under which Nanjing will pay St Modwen £2 million a year, will be signed by Wang Hongbiao, director and vice president of Nanjing (NAC) and Bill Oliver, chief executive of St Modwen.
It will be witnessed by Chinese ambassador Zha Peixin, who is currently visiting the city, and Coun Mike Whitby, leader of Birmingham City Council.
"Since the closure of MG Rover in April last year, I have been determined to bring about a resumption of car building at the historically significant site of Longbridge," said Coun Whitby (Con Harborne).
"NAC asked Birmingham council to be their strategic partners and help them in their negotiations with St Modwen.
"We have given them advice on issues such as regeneration, planning law and public relations, all of which have culminated in today's announcement.
"As a result of the deal we will witness today, we have created hope and opportunity for the people of Longbridge and Birmingham and we have safeguarded the MG brand in Birmingham for the foreseeable future."
The site could eventually produce 100,000 vehicles a year in the MG TF and MG ZT car ranges, while St Modwen will oversee the redevelopment of the rest of the site into a mixed-use development which could create 10,000 jobs.
Mr Wang said: "I am delighted that we have reached an agreement with St Modwen. This means we can move forward with our business plan to build cars at Longbridge.
"The MG brand is famous around the world and we are proud to project it to an exciting future.
"We are grateful for the help and support the city council has given us throughout this process of negotiation, and look forward to working with them in the future."