Business Secretary John Hutton is visiting Nissan’s European Design Centre in London this morning with Nissan chief executive Carlos Ghosn, where he will confirm that the Government would support the project with a contribution of £6.2 million.
Ghosn said: "By delivering on tough commitments, our employees at Sunderland have demonstrated our plant can be a globally competitive centre for the production of high-value products.
"We are encouraged by the proactive support shown by the British government to decide new products for the Sunderland plant."
A spokesman for the manufacturer said the new vehicle will be an addition to the current Nissan range and will take up the manufacturing capacity created when production of the current version of the Micra ends in 2010.
Hutton said Nissan’s investment was great news for Sunderland, for jobs in the area and for the regional economy.
"It shows Britain is a competitive place for the automotive industry to invest and to do business.
"Like the successful Qashqai, this new car will be a great British achievement – designed in London, built in Sunderland," he added.
"The ingredients for Nissan's success story - innovation, creativity and a highly committed and skilled workforce - will be key if Britain's manufacturing is to thrive in an increasingly competitive global economy."