Toyota will invest $123 million in its Australian manufacturing operations.
The federal and Victorian governments will contribute to the package, it was announced on Monday.
Toyota's Altona plant in Victoria will receive a $108 million investment.
The remaining $15 million will be spent to expand Toyota's supplier development program over the next five years, Toyota Australia said.
Toyota will build a "facelift" vehicle - an upgraded version of an existing model - from 2015, but has not disclosed which model.
The federal government has contributed $23.6 million with an unspecified amount coming from the Victorian government.
Toyota Australia chief executive Max Yasuda said local manufacturing is a key focus of the company's five-year transformation program.
"This program will see a dedicated team of engineers working with local suppliers to assist them to improve productivity, diversify their business operations and improve their global competitiveness," Mr Yasuda said.
The federal government is contributing $5 million to support the development program, bringing its total contribution to $28.6 million.
Federal Innovation and Industry Minister Kim Carr said this was an investment in securing thousands of manufacturing jobs.
"Australia is one of only 13 countries that can make a motor car from start to finish," Senator Carr said.
"The Labor government wants to retain the expertise."
Victorian Premier Denis Napthine said Kevin Rudd couldn't claim credit for the deal which was stitched-up weeks before he became prime minister.
"This deal is a deal agreed between the state government, who contributed, the federal government, and Toyota and that was agreed weeks before Kevin Rudd became prime minister again," Dr Napthine said.
The Victorian government would not disclose its contribution to the package.
