RWE Innogy, the renewable unit of German utility RWE Group, has entered into a joint agreement with Norwegian power firm Statkraft for the development of the 900MW Triton Knoll Offshore Wind Farm in the UK.
The two firms will have a 50 / 50 stake in the project, which is located off the east coast of the country.
It is likely to involve an investment of £3bn to £4bn ($4.6bn-$6.1bn).
Once operational, the wind farm is expected to produce enough electricity for nearly 800,000 average households in the UK.
Financial details have not been disclosed. The agreement is expected to close by 2017, following which onshore construction will start.
The development and construction phases of the wind farm, which are likely to create 1,900 job opportunities, will be handled through a joint project team of RWE and Statkraft.
The UK Government approved the development consent order (DCO) in July 2013.
Statkraft executive vice-president Jon Brandsar said: "This is an important step for Statkraft in delivering on our strategy for offshore wind."
Statkraft head of offshore wind Olav Hetland said: "The project itself is blessed with ideal characteristics for an offshore wind farm, including shallow waters, strong wind resource and excellent ground conditions.
"In addition, it is in an area of seabed which Statkraft knows very well from its Sheringham Shoal and Dudgeon offshore wind projects."
Meanwhile, RWE Innogy CEO Hans Bunting said: "Securing partners for projects such as Triton Knoll has been a key objective in our renewables strategy and this latest successful partnership with Statkraft highlights the attractiveness of our developments and RWE’s continued commitment to offshore wind."