Previously, Tata Motors had revealed it was considering closing the plant where Jaguar models had been built for 50 years, meaning the 390 strong-workforce would be laid off.
However, trim component designers Lawrence Automotive Interiors, has confirmed it will buy and guarantee jobs for at least five years.
Lawrence Automotive will now work through final due diligence before an official announcement is made about the future of the Coventry plant – known as the Veneer Manufacturing Centre facility.
A spokesman for JLR said: "Expressions of interest to purchase the VMC as a going concern were invited last year following the announcement of the outcome of a strategic review of the Jaguar Land Rover business.
“I can confirm that Lawrence Automotive Interiors have formally indicated to us their intention to maintain the VMC at Brown’s Lane for at least five years and to invest substantially in technology at the facility."
Car production at the site stopped in 2005 after 55 years of production, but the VMC has continued to build interior parts and Nottingham-based Lawrence Automotive Interiors has promised ‘significant’ investment in the facilities.
Jaguar’s latest model, the new XJ, was produced at the Castle Bromwich site in Birmingham. The company also employs nearly 2,000 workers at a Halewood plant on Merseyside where the Land Rover Freelander 2 is built, and over 5,000 workers at a Solihull factory.