The first deal is likely to involve a stake in the new plant at Hinkley C which could be confirmed as early as next week.

Construction at Hinkley will be led by the French state-controlled giant EDF which has been looking for a partner to share the £14bn costs.

Osborne made the announcement on the last day of a trade visit to China.

He said: “Today is another demonstration of the next big step in the relationship between Britain and China the world’s oldest civil nuclear power and the world’s fastest growing civil nuclear power.”

Planning permission was granted for Hinkley Point earlier this year but the project has been on hold due to continued funding wrangles.

More than 5,600 people are expected to be directly employed on the project.

A Bouygues TP/Laing O’Rourke joint venture is main contractor on the main build.

Another joint venture of Bam Nuttall and Kier has bagged the £100m earthworks contract and Balfour Beatty Civil Engineering the £30m job to build a temporary 500m jetty for construction materials to be shipped in.

A Costain/Sir Robert McAlpine joint venture is in line to win a £200m civils package for tunnels to channel seawater in and out of the plant.