Austin-Healey, one of the most famous names in British motoring, could be on its way back to its traditional West Midlands home at Longbridge.

Just a fortnight after MG’s new owners, Chinese car makers Nanjing Automobile, relaunched production at Longbridge, the firm has struck a deal paving the way for a Healey revival.

It has signed a deal with Healey Automobile Consultants and HFI Automotive, the group that has been planning to produce the first new Austin Healey in more than three decades.

Motoring enthusiasts are now hoping that new Healeys and Austin-Healeys may sit alongside them on car dealer forecourts nationwide.

In a brief statement overnight NAC said it had reached an agreement with Healey Automobile Consultants and HFI Automotive “to collaborate on the future development of the Healey and Austin Healey brands and sports cars bearing their name.”

The deal ends arguments about ownership of the brands and trade marks and expands opportunities for joint trade between the companies.

Running prototypes are understood to already be under test. The Healey name was founded by Donald Healey in 1946 and linked up with Longbridge-based Austin Motors to produce some of the most popular British sports cars of the post-war period.

The company kept on building cars in a link-up with West Bromwich-based Jensen until the Black Country firm went out of business in 1975.

Nanjing has said it hopes to make around 15,000 MG TF roadsters a year, and is marketing MG in China as “Modern Gentleman” – rather than the original “Morris Garages”.