General Motors Holden has struck a deal with two Chinese companies to design and engineer two cars at its Port Melbourne site.

The deal with Shanghai General Motors and the Pan Asia Technical Automotive Centre does not include the manufacturing of the vehicles.

Holden says it cannot provide details of the cars for commercial reasons.

The agreement will involve a team of Melbourne-based engineers and designers tailoring vehicles for the Chinese market based on GM global platforms.

Holden chairman and managing director Mike Devereux said Holden was a valued source of expertise within GM's international operations and was one of only seven fully integrated design, engineering and manufacturing operations in the GM group.

"We have worked with SGM and PATAC in recent years on smaller projects, but this is the first significant, long-term project to partner our organisations," he said.

"It gives the Holden workforce a great sense of pride to work on global vehicle programs like this and to see Australian design, engineering and manufacturing expertise exported around the world."

Federal Industry Minister Greg Combet says the new deal could not have happened without the $275 million support package from the Commonwealth, South Australian and Victorian governments.

Mr Combet says it shows Australia's car manufacturing industry continues to compete successfully in the global marketplace.