Peugeot and Citroen parent company PSA has confirmed it will supply light commercial vehicles to Toyota for the European market.
Toyota discontinued the HiAce van in Europe last year, and PSA now owns Fiat's stake in the SevelNord factory in France, previously a joint venture.
"The Light Commercial Vehicle segment is an important one for us in many markets throughout Europe," Toyota Motor Europe CEO Didier Leroy said.
By joining forces with PSA Peugeot Citroën, we have found a good solution for our loyal customers following the recent discontinuation of our own HiAce model."
PSA will build Toyota-badged versions of the Peugeot Expert and Citroen Jumpy - sold by Fiat in Australia as the Scudo - from early 2013.
The agreement goes beyond simple badge engineering, however.
The two groups will share the cost of setting up factories, while also collaborating on the development of new light commercial vehicles.
The companies confirmed that the partnership could continue until 2020 and beyond.
"This agreement launches the development of a new generation of mid-size Light Commercial Vehicle offering both companies a competitive product for the European market," PSA's Jean-Christophe Quémard said.
The salvation of the SevelNord factory comes just weeks after Peugeot announced the closure of its Aulnay plant near Paris, including a company-wide slashing of 8000 jobs, citing falling European demand. SevelNord employs 2800 workers.
The first Toyota-badged PSA vans should hit European roads around April next year.