The Renault-Nissan alliance signed a long-awaited deal to take control of Russia's largest car maker, AvtoVAZ (AVAZ.MM), as it seeks growth in fast-growing markets outside sluggish Western Europe, Reuters reported.

The car group would hold 67 percent of a joint venture with state corporation Russian Technologies to own 74.5 percent of AvtoVAZ. The non-binding preliminary agreement would give the Franco-Japanese alliance 50.01 percent of the maker of the Lada.

The alliance plans to invest about $750 million in the deal, including about $300 million from Renault (RENA.PA) and the remainder from Nissan (7201.T).

Russian Technologies has agreed to restructure its outstanding loans with AvtoVAZ to give it a "strong balance sheet with no liquidity constraints", while the alliance would accelerate technology transfer to AvtoVAZ.

The companies hope to sign a definitive deal by the end of this year, with the transaction expected to be completed by 2014, by which time the venture will buy Russian investment company Troika Dialog's (SBER.MM) entire stake in AvtoVAZ.

Renault initially bought 25 percent of AvtoVAZ in 2008 for $1 billion. Sales were subsequently hammered by the financial crisis, forcing AvtoVAZ to be bailed out by the government.

The alliance has been discussing taking a majority stake in the Russian car maker with its shareholders since last year. With a share of nearly 33 percent, Russia is the alliance's third-largest market after China and the United States.

Russia is on track to become Europe's biggest car market by the middle of the decade as rising incomes and a surge in consumer spending drive consumers toward showrooms.