Film company Pinewood is to set up a new studio in Cardiff.
The deal was announced today by Wales's First Minister Carwyn Jones and Pinewood Shepperton chief executive Ivan Dunleavy.
A new 180,000 sq ft complex will be established at the former Energy Centre building in Wentloog, Cardiff, and will form part of Pinewood's global network of film studios.
Welsh Government officials hope the facility will generate an estimated £90 million for the economy.
Mr Jones said: "Attracting such an iconic global brand as Pinewood is wonderful news for Wales.
"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."
Pinewood and Shepperton Studios have been home to more than 1,500 films in more than 75 years, including the James Bond franchise and the Carry On series.
In addition, more than 241 independent, media-related companies are based at Pinewood and Shepperton's Media Hub.
The announcement has been welcomed by leading members of the creative industries and acting community in Wales.
Hollywood actor Michael Sheen, who originally hails from Port Talbot, described the deal as great news.
Sheen, who has appeared in Oscar-nominated films such as Frost/Nixon and Blood Diamond, said: "This is a logical next step, building upon the huge success of the revitalised Welsh entertainment industry.
"It's always a precarious business to attempt such a large undertaking, but it points to the confidence, the expertise and the creative spirit of the people of Wales and I hope it can help the country come closer to realising its hopes for the future."
That sentiment was echoed by award-winning production designer Ed Thomas.
His credits include Da Vinci's Demons, Doctor Who and Torchwood.
He said: "As someone who actively promotes and works in the industry here, I am continually surprised when I meet producers from around the world who still have no idea of our country's contribution to film and television.
"Pinewood will provide much-needed attention on promoting Wales at the highest level so I welcome the decision greatly."