NISSAN is expected to announce today that the new generation Micra is to be built in the North-East - guaranteeing the future of about 1,300 jobs.

Carlos Ghosn, chief executive of Nissan, is poised to reveal that the much-awaited decision is to go in favour of the Sunderland plant.

According to reports in this morning's Financial Times, Nissan's executive committee has opted in favour of Sunderland after intensive lobbying by senior Government ministers and an agreement by managers at the plant to cut costs by up to 30 per cent.

Prime Minister Tony Blair, who is known to have intervened with Mr Ghosn several times, is expected to be in the North-East today and will be delighted at the news.

Nissan employs 5,000 people on Wearside, as well as supporting several thousand other jobs in supply industries, and is viewed as a key symbol of the North-East's economic resurgence.

The investment, worth an estimated £230m, will lift output at Sunderland from 330,000 cars a year up to 500,000 a year.

Earlier, it was reported that a massive investment programme was being planned for the Sunderland plant, even if it missed out on the contract to build the new Micra.

It was understood yesterday that Nissan had allocated at least £600m for Sunderland, including investment in the Almera and Primera models.

A spokesman for the Society of Motor Manufacturers and Traders said: "It may mean they are going to increase production of existing models.

"It means that although it would be excellent news if the Micra did come to Sunderland, it would not be disastrous if it didn't."

And one well-placed industry source said: "If Nissan had made a decision that the Sunderland plant is very much in its future plans, then future investment could perhaps be expected."

A Nissan spokesman said a decision on where the new Micra would be built was "imminent".