Gamesa is investing £125 million in a new offshore manufacturing plant in Edinburgh that will build blades for wind turbines.
The Spanish wind power company said the new facility in the port of Leith could create around 800 jobs.
British Prime Minister David Cameron said the announcement was “fantastic news for Scotland and shows that the UK remains an attractive place for foreign investment”.
"Scotland benefits from UK-wide initiatives to promote renewables and access to the entire UK consumer market.
"That, coupled with the economic security that comes from being part of one of the world's most successful unions, makes Scotland an obvious place for companies like Gamesa to invest in."
Gamesa has signed a memorandum of understanding (MoU) with Forth Ports and the two will work together in preparation for a longer term agreement.
The blades, which can be 50m long, will be made for turbines set to be built around the British coast.
Scottish First Minister Alex Salmond was told of the decision by Gamesa's global chairman Jorge Calvet this morning, and said it is "validation" of the Scottish Government's pursuit of a low-carbon economy.
Salmond said: "I'm delighted that Gamesa has chosen Scotland and the fantastic Port of Leith as its preferred location for the manufacture of its new model of offshore wind turbines.
"This is terrific news, meaning around 800 jobs and 150 million euro (£125 million) of investment in Scotland.
"Their decision, coming less than a year after opening their offshore wind technology centre near Glasgow, follows many detailed discussions with the Scottish Government, SDI and Scottish Enterprise and the company's own careful analysis of locations offering the optimum environment to deliver its product.
"I look forward to the parties moving forward quickly to conclude the MoU, as today's announcement is a welcome boost to Leith and to the wider Edinburgh and Lothians economy - with hundreds of quality engineering and other jobs coming to Scotland's capital city."