Steven Spielberg and Anil Ambani have struck a deal that will see the billionaire Indian mobile telecoms tycoon contribute $325 million to a $825 million production budget that will be controlled by the Hollywood director’s studio.

DreamWorks, Mr Spielberg’s studio, is set to make five or six films a year under the collaboration, the most significant yet to link Hollywood with Bollywood, the company said in a statement.

The original plan, formulated last year, had involved DreamWorks raising $750 million in syndicated loans, which might have been matched by Mr Ambani. It was jettisoned when the global credit market collapsed.

Earlier this year DreamWorks signed a distribution deal with The Walt Disney Company, who will handle marketing and distribution of the revamped studio’s films around the world, except for India where Reliance BIG Entertainment, Mr Ambani’s Bollywood outfit, will retain distribution rights.

"This venture with Reliance opens a new door to our future," said Mr Spielberg, who recently parted company with Paramount, the Hollywood studio.

"Their visionary step has given us a new set of dreams to work toward."

Reliance is putting in about $325 million into the deal while Disney is contributing $150 million. The balance is from banks and other investors, Mr Ambani said.

JPMorgan Chase is leading the syndication and is thought to be contributing $75 million. CityNational and Bank of America are understood to be adding another $50million each.

The new company is a continuation of DreamWorks Studios, which was formed in 1994 by Mr Spielberg, Jeffrey Katzenberg, and David Geffen.

The company won three consecutive Best Picture Academy Awards with American Beauty, Gladiator and A Beautiful Mind.

Other credits include Saving Private Ryan and Transformers, which were co-produced with Paramount.

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