SAIC has agreed to pay more than £11m for the name which would complete the Chinese car maker's takeover of the failed British car company.
Together with the £67m it paid for the design rights of some Rover models, the agreement will see SAIC gain all it wanted at a fraction of the £200m price discussed with MG Rover management before the car maker collapsed last year.
Ford has first refusal on the Rover name following its acquisition of Land Rover from BMW in 2000. However, it is understood Ford is unlikely to take up that right, leaving SAIC free to acquire it.
The Chinese company is expected to start producing Rover-badged cars based on the old 25 and 75 platforms but it will not build 4X4s sporting the name because of a condition agreed when Ford bought Land Rover.