Film studios in South Wales, dubbed 'Valleywood', could be taken over by an American company.
Dragon Studios have seen some productions but have been in the hands of administrators since 2008. Now Fox Television 21 is being helped to secure the lease of the facility.
The First Minister insists the proposed Pinewood Studios project in Wales is different to a previous, similar plan, nicknamed 'Valleywood'.
The Chief Executive Officer of Pinewood Shepperton says a new film studio in Cardiff will "do much to boost the Welsh film and television sector".
The new Pinewood Studio Wales will be based here in Wentloog in a building formerly used by environmental company G24i.
The space will be transformed into four studios.
Actors Matthew Rhys and Michael Sheen have welcomed news that Pinewood Studios is to create a new studio in Cardiff.
The First Minister has described the Pinewood Studio Wales deal as a 'major coup'.
Carwyn Jones said: “After the glitz and glamour of last night’s BAFTA awards, I can reveal that the Welsh Government has secured one of the biggest prizes in the British film and television industry.
"Attracting such an iconic global brand as Pinewood is wonderful news for Wales. Pinewood is synonymous with world-class British and international productions, including the James Bond film franchise, and is home to some of the most successful feature films ever made.
“This high-profile investment is of significant economic value to Wales while the partnership between the Welsh Government and Pinewood offers a priceless opportunity to promote Wales as a world-class location for film and television production."
Global film company Pinewood Studios is to create a new studio in Cardiff in a deal agreed with the Welsh Government.
First Minister Carwyn Jones has unveiled the plans at a press conference with Economy Minister Edwina Hart and Pinewood Shepperton Chief Executive Officer Ivan Dunleavy.
Pinewood and Shepperton Studios have been home to more than 1,500 films, including the James Bond franchise, and Carry On series.
The 180,000 sq ft studios facility will be created in the former Wentloog Environmental Centre in Cardiff and will form part of Pinewood’s global network of film studios. The deal is set to generate an estimated £90 million spend with Welsh businesses.