Jaguar Land Rover is considering building a new engine plant at Wolverhampton’s i54 business park in a move which would create around 1,000 jobs.

The news was revealed today and it is understood the luxury car maker is considering the £67 million site to help meet the demand for its booming car sales in Asia.

South Staffordshire MP Gavin Williamson confirmed he had been in talks about the proposal and was meeting with Business and Enterprise minister Mark Prisk tomorrow to ensure the Government does all it can to attract the company to the area.

According to sources close to the company, JLR has identified Wolverhampton, South Wales and a site in India for potential locations for its new plant.

Mr Williamson said an inward investment from the manufacturer would “totally transform” the local economy.

“I will be trying to make sure the best possible deal is put forward in order to try and get Jaguar Land Rover to the i54 site,” said Mr Williamson.

“We want the best possible deal to attract what would be an absolutely fantastic and major investment in the area.”

Sources say the UK is the most likely base for the plant. The 226-acre i54 site is a contender to become an Enterprise Zone and qualify for tax breaks.