Bentley will take over production of W12 engines for the Volkswagen Group from the end of this year.
The current production of W12 engines for the group in Germany will end, with Bentley becoming the new Centre of Excellence for the technology within the VW Group.
Bentley already produces some 5000 W12 engines annually, but that number is expected to grow to 9000 units by 2017-18 with additional orders from the likes of Audi and Volkswagen. Bentley will also use the engines in its Continental GT, GTC and Flying Spur models.
That figure also includes engines for the firm's forthcoming SUV model, which will launch in 2016.
The move also means Bentley will start exporting engines for the first time in its history. Company boss Wolfgang Schreiber said: "This is an important step, not just for Bentley but also for the UK manufacturing sector.
"This W12 centre of excellence is recognition of the long standing engine manufacturing expertise we have that has resulted in performance improvements across the model ranges over recent years."