A new MG car will be built at the Longbridge factory in Birmingham, bosses at the car firm have announced.
Production of the firm's MG6 hatchback will begin in China next month, but will move to Longbridge in 2010.
Work on the MGTF sports cars has been halted at the south Birmingham site until spring to save money.
Birmingham City Council leader Mike Whitby said the news demonstrated the firm's belief in Longbridge as a "major car producer".
MG Rover went into administration in April 2005 with the loss of 6,000 jobs.
Three months later the company's assets, including the equipment at the Longbridge factory, were sold to Chinese car maker Nanjing.