The report citing a source with knowledge of the company’s plans, said the factory would be built in Wolverhampton, central England, and creates some 2,000 jobs.

It added Britain's coalition government had offered around 10 million pounds of support for the plant.

JLR, a unit of India's Tata Motors, could make an announcement as early as Monday in conjunction with British business secretary Vince Cable, the report added.

JLR was unavailable for comment when contacted by Reuters.

Copyright Reuters, 2011