Coachbuilder Bertone's sale to Fiat has been approved by Italian Industry Minister Claudio Scajola.
Consequently, Fiat will invest 150 million euros (£128m) over three years in the struggling contract manufacturer, which is best known for its work on cars ranging from the Lamborghini Miura to the Volkswagen Polo during its 96 years in business.
Fiat boss Sergio Marchionne has said he wants to use Bertone's Turin plant for niche vehicle production, but has declined to say which models he is planning beyond revealing they will be sold in Europe and the USA.
Fiat declined to say which niche model or models it would make at Bertone's Turin factory. The only detail the company gave was that the vehicles would be sold in Europe and North America.
Italian press reports suggest that, from late 2011, Fiat could use the Bertone plant to make everything from convertibles to large saloons.
The Bertone family lost control of its coachbuilding business when bankruptcy administrators took control in February 2008.