The news was welcomed yesterday by unions and the Government, which is now seeing a run of positive developments in the drive out of recession.
JLR's plant in Solihull will benefit from the Indian-owned firm's £1.5 billion investment, bringing direct new jobs to the West Midlands as well as in service firms in other parts of the country. The money will go towards the introduction of technically-advanced aluminium vehicle architecture in future models.
The first model to showcase this will be a mid-sized sports saloon Jaguar car, to be launched in 2015.
The news is a boost to the UK motor industry, which has been enjoying increasing sales of cars this year.
JLR chief executive Dr Ralf Speth said:"Jaguar Land Rover is a business driven by design, technology and innovation and this investment and level of job creation is yet further evidence of our commitment to advancing the capability of the UK automotive sector and its supply chain."
The 1700 new jobs at the Solihull site in the West Midlands will bring the total number of UK manufacturing roles announced by the firm over the past three years to almost 11,000.
Business Secretary Vince Cable said:"This all-aluminium architecture project typifies the type of innovative and high-value R&D that the UK excels in and Government is supporting through the automotive industrial strategy."