The US carmaker said the sale was expected to close by the end of the next quarter, subject to customary closing conditions and regulatory approvals.

Once the sale has been finalised Ford said it would contribute up to approximately $600m to the Jaguar Land Rover pension plans.

It will also continue to supply Jaguar and Land Rover with engines, stampings and other vehicle components as well as technological support.

“Jaguar and Land Rover are terrific brands," said Alan Mulally, president and CEO of Ford Motor Company.

"We are confident that they are leaving our fold with the products, plan and team to continue to thrive under Tata's stewardship.”

The protracted sales process has been underway since June last year when Ford announced the two marques were for sale as a package.

Tata was named as Ford's preferred bidder in January and talks over a possible sale have been ongoing since then.

Ratan Tata, chairman of Tata Sons and Tata Motors, said the acquisition would see the two carmakers become a “significant part” of the company's automotive business.

“We have enormous respect for the two brands and will endeavour to preserve and build on their heritage and competitiveness, keeping their identities intact,” said Tata.

“We aim to support their growth, while holding true to our principles of allowing the management and employees to bring their experience and expertise to bear on the growth of the business.”

Jaguar and Land Rover employ around 16,000 people in the UK and today's deal is believed to safeguard those jobs.

Ford said Jaguar and Land Rovers employees, trade unions and the UK Government had been kept informed of developments as the sale process progressed and had indicated their support for the agreement.