Leith, just outside Edinburgh, beat a site in Hartlepool, north east England, to the prize of hosting the Gamesa facility.
The plant will also be home its offshore operations and maintenance (O&M) business. Gamesa had previously ruled out the Port of Dundee from the selection process.
The Spanish turbine manufacturer will now pursue Memorandum of Understanding (MOU) with the Port of Leith, aimed at agreeing detailed arrangements for the site, which will house blade and nacelles plants, port logistics and O&M services.
Gamesa estimates the facility, first proposed in October 2010, will require an initial investment of €150 million and eventually create about 800 new jobs.
"Selection of Leith as our preferred partner for the MOU aimed at establishing a UK manufacturing base is only a first stage, but an important one," said Gamesa Chairman and CEO, Jorge Calvet.