A spokesperson for Arvato said: "Negotiations between all parties are progressing very well, but there are aspects of the agreements which still need to be finalised concerning the Liverpool site."

"It would not be appropriate for us to make a detailed announcement at this stage," he added.

According to the Liverpool Echo it will initially be a four press plant, creating 400 jobs. Ultimately, however, it could have 12 gravure presses, which would create nearer 1,000.

It is believed that sites in Derby and Sheffield were also previously in the running, but a 7.5m grant from the DTI may have helped swing the deal in favour of the 75-acre Speke site, south of Liverpool (PrintWeek, 27 May).

Story by Darryl Danielli