The news is hardly surprising given that China is now the world's largest car market (having overtaken the USA) and every manufacturer wants a piece of the pie.
According to Tata Motors' (Jaguar Land Rover's parent company) CEO Carl-Peter Forster, the company has had "good discussions" with a Chinese auto maker that may soon become the brand's manufacturing partner. No names have yet been mentioned.
Despite having tremendous potential around the world, Mr Forster said the brands had been "somewhat under-managed" under the Ford umbrella.
Sources say the deal will likely start with Land Rover SUVs being manufactured in China prior to Jaguar vehicles.
Given the huge demand in China, it's likely that all Jaguar and Land Rover cars built in China will be for the Chinese market only (at least for now).
The bigger question here is whether or not, in time, we will see luxury car makers exporting from China? Would you buy a Chinese built Jaguar?