Toshiba will invest £200m to build three nuclear reactors in the UK, David Cameron and Japanese counterpart Shinzo Abe have announced.
Under the agreement, that is expected to help create 14,000 jobs, Toshiba-owned Westinghouse Electric Company will supply three AP1000 nuclear reactors to a new nuclear facility at Moorside, near the Sellafield site in Cumbria.
Earlier this month, plans for a new nuclear power station were given a boost when Toshiba agreed a £102m deal to buy a majority stake in the project to build the three reactors.
Prime Minister Cameron said: "Today, we can announce the huge investment being made by Toshiba and Westinghouse, over £200 million, into the rebuilding of the British nuclear industry, specifically in the north west of our country in a project that could provide as many as 14,000 jobs during the construction phase and thousands of jobs ongoing as well as providing low carbon base-load electricity for Britain.”
Japan’s Prime Minister Abe, who is currently on a tour of Europe that will see him visiting Germany, Portugal, Spain and France, commented: "I strongly hope that the strong bond and ties between the Japanese economy and the British economy will further be promoted."
Energy Secretary Ed Davey said: "This is an important step forward in the plans for a new nuclear power station at Moorside - a plant that will generate enough clean electricity to power around six million homes.
"The new nuclear programme is a core part of our drive to build a new, clean energy sector in Britain to tackle climate change at the same time as we deal with a legacy of under-investment in Britain's energy sector, and ensure we remain among the most energy secure countries in the world."
During talks held at 10 Downing Street, the two prime ministers also agreed on a deal that would pave the way for British companies to win lucrative contracts for the Tokyo 2020 Olympics and the 2019 Rugby World Cup.
It is believed the agreement fostering economic links between the two countries could bring millions to the UK economy.
Trade minister Lord Livingston said: "I am delighted that Japan has signalled that it wants to use UK expertise to help deliver both the Tokyo Olympics and Rugby World Cup. The delivery of London 2012 on time and under budget has shown the world that the UK has a significant amount of expertise in staging large-scale events."