Industrial giant Siemens has revealed plans for a huge development at the Goole 36 development - just 30 minutes drive from Doncaster - which will manufacture and commission trains primarily for the domestic market.
The new factory is set to employ up to 700 people in skilled engineering and manufacturing roles, plus an additional 250 people during the construction phase.
Those behind the scheme estimate around 1, 700 indirect jobs would be created throughout the UK supply chain.
This latest development is set to compliment three previously announced rail schemes in Doncaster.
The £400 million iPort in Rossington is nearing completion and will create up to 5000 jobs once fully operational.
Another new railway depot at Doncaster Carr to maintain a fleet of services by Hitachi Rail Europe also recently created 250 jobs.
Meanwhile, plans have previously been revealed for a new £150m railway station at Doncaster Sheffield Airport.
Juergen Maier, chief executive of Siemens, said: "This investment has the potential to have a tremendous impact on the Yorkshire economy and the North of England as a whole, ensuring that the benefits of infrastructure spending are spread widely and helping to ensure the ongoing development of the UK rail industry.
“Having considered multiple locations in the UK, I’m delighted to confirm that we’ve identified a site in Goole for our new UK rail factory which not only has the potential scale we need for a facility of this size but also ready access to the skilled people we would need to build and operate the factory."
The factory, which will be close to junction 36 of the M62, will include manufacturing and commissioning buildings, warehouses, offices, and stabling sidings with potential for the development of a test track.
John Cridland, chairman of Transport for the North, said the factory will have the potential to compete to provide the trains required to help fulfill Transport for the North’s Strategic Transport plan while transport secretary Chris Grayling called the development “an exciting proposal.”