Universal Studios is to build a $4 billion dollar theme park in Johor Baru, Malaysia.

The Singapore Straits Times reports that Universal has finalised an agreement with the Johor State government to set up a theme park which will be 'larger than the 60-ha Universal theme park in Los Angeles.'

Johor State Government has earmarked 800-ha of land in Bandar Nusajaya, close to Singapore, for the development of the park and supporting amenities, including hotels and restaurants.

Universal will construct and manage the park, with local and foreign investors building and operating surrounding facilities. The development of Bandar Nusajaya has been undertaken by investment holding company Prolink Development Sdn Bhd.

This will be the second Asian park for Universal which opened Universal Studios Japan just over a year ago in Osaka.

A formal announcement about the new park is expected after a presentation of the plans has been made to Malaysian prime minister Mahathir Mohamad.

A spokesman at Universal would not confirm or deny the story, but said a feasibility study was underway.