Rosoboronexport, which holds a 75% stake in AvtoVAZ, said the agreement would be signed on December 8.
Renault launched production of inexpensive Renault Logan cars in Russia in late 2005 at the Moscow-based Avtoframos plant, in which the Moscow city government has a stake. The French carmaker invested $250 million in the project.
Under an agreement signed with the Moscow city hall in May 2007, Renault is to sink another $150 million into the project and double production capacity from the 2007 level of 80,000 cars.
A Russian automotive industry spokesman said on Wednesday that U.S. giant General Motors was one of the contenders for a stake in AvtoVAZ.
The Associated Press quoted GM spokesman Marc Kempe as saying the company had recently submitted a formal bid for a stake in AvtoVAZ in order to increase its role in the country's rapidly growing market. GM, the world's largest car producer, has two plants in Russia and is currently building a third.
Sergei Chemezov, the former head of Russia's arms exporter Rosoboronexport, earlier said the company was set to sell a blocking stake in AvtoVAZ to a Western car manufacturer in a bid to find a long-awaited strategic partner. He named GM, Fiat, Renault and Magna as possible contenders.
Rosoboronexport, which controls AvtoVAZ, values the company at about $4 billion.
In 2006, the carmaker received 2.5 billion rubles ($100 million) in net profit, almost 80% more than in 2005. Revenue in 2006 gained 15% on 2005 to reach 152.4 billion rubles ($6.1 billion). In 2007, the company expects a total of 166 billion rubles ($6.6 billion) in revenue.
Since 2001, GM has had a joint venture with AvtoVAZ in Togliatti, on the Volga River, where the Russian company is based. However, the partnership has encountered difficulties since the Russian government took control of AvtoVAZ in 2005, resulting in a temporary halt in production last year.
