An outline planning application has been submitted to East Riding Council for a £200m factory in Goole, which will build state-of-the-art trains for the Piccadilly Line.
The facility will create 700 jobs, but Brigg and Goole MP Andrew Percy revealed today that the company had been in talks with the Government over a new "rail village" which could create another 150 to 200 "high quality" jobs.
He said: "This is great news and is an important step forward, what is even better is that Siemens are considering even more ambitious plans for Goole.
"In addition to the rail factory they have been looking at creating what would essentially be a 'rail village' with a five-mile testing track (known as a test ring).
"It would be the first facility (of its kind) in the UK and a national asset and would lead on the digitilisation of the rail industry.
"It would be for testing trains which would have to be sent away for testing at the minute
"Siemens have already had initial discussions with the Government and I have pledged to support them. It's at very early stages.
"If it does happen there will be hundreds more jobs on top of the rail factory jobs, about another 150 to 200 jobs on top."
As well as the test ring, there will be a test track at the new factory, which is earmarked for a 104-acre site at Goole 36, close to junction 36 of the M62.
It will include 80,000 sq m of manufacturing, commissioning, warehouse buildings and stabling sidings as well as a four-storey 5,000 sq m office building.
Siemens Mobility’s UK rolling stock engineering and commissioning team will also be based at Goole.
The company also plans to locate its Digital Operations Centre onsite, to collect and analyse trainborne data for operators.
Siemens declined to comment on the test ring, but said the submission of plans was a "major step forward."
In a statement Will Wilson, managing director, rolling stock, from Siemens Mobility Ltd said: "With digitalisation we can help make trains and infrastructure intelligent and reaching this milestone furthers our vision to create a sustainable, long-term and technically advanced facility that is an asset to the UK.
"It’s the result of positive dialogue with the local authority, statutory bodies and other stakeholders, including community representatives."
It is currently recruiting for key project roles and says it will be looking to access skills available locally and grow a new skills base to establish a "diverse and inclusive" workforce.
The company opened a £310m wind turbine blade factory in Hull in 2016.