Image caption The new Bentley is likely to be based on this concept car - the EXP 9F Image caption The EXP 9F concept car was displayed at car shows in 2012 Image caption The 1,000 jobs are expected to be created at various UK locations Image caption Bentley only released this sketch of the new car Image caption The new car will have to compete with models from Range Rover, Audi and Porsche previous slide next slide

Bentley says the development of a luxury car will result in 1,000 new jobs in the UK.

The carmaker is investing £800m at its headquarters in Crewe to develop and build the sports utility vehicle (SUV), which will compete with cars like the Range Rover.

Bentley's owner, Volkswagen, considered making the car in Bratislava, Slovakia, where it already builds SUVs.

The British government lobbied to keep the project in the UK.

Prime Minister David Cameron was at the announcement at Bentley's headquarters.

Media playback is unsupported on your device Media caption David Cameron: "A thousand jobs for our country and another success for our automotive industry"

"I am delighted that Bentley will be building their new vehicle here, not only creating a thousand jobs, but safeguarding many more, as well as increasing training opportunities for highly skilled apprentices," he said.

Chairman of Volkswagen Martin Winterkorn said: "The Volkswagen Group believes in the UK as a competitive location for industrial production.

"Together we will make this new Bentley another true Bentley - powerful, exclusive and successful."

The new car is due to go on sale in 2016.

It will be Bentley's fourth model joining the Flying Spur, Continental GT and the Mulsanne.