Life Savers, the classic Australian lollies, are set to return to Australian ownership and again be manufactured locally after confectionery maker Darrell Lea struck a deal to buy the brand from Swiss-based food giant Nestle.

Darrell Lea announced the conditional deal on Thursday, and said production of Life Savers would move from New Zealand to Australia, where they were last manufactured in the early 2000s.

About 20 million packs of Life Savers are sold every year, according to Darrell Lea. Credit:Eddi Jim

The deal, which also wraps up a suite of other Nestle's New Zealand-made lolly brands including Odd Fellows and Mackintosh's Toffee, is Darrell Lea’s first big move since it was bought by Quadrant Private Equity for $200 million this year.

“Nestle approached Darrell Lea about a portfolio of brands they were looking to divest, and we saw it as a great opportunity,” Darrell Lea chief executive Tim York said.