Steven Spielberg, the Hollywood film-maker, and Anil Ambani, the Indian billionaire, have finalised an $825 million (£504 million) deal that will fund the production of up to six films a year by the Oscar-winning director’s DreamWorks studios.

The pact allows Mr Spielberg and his business partner, Stacey Snider, a veteran movie executive, to move ahead with making movies after a ten-month delay, which DreamWorks spent scrambling to arrange financing.

The original plan, formulated last year after DreamWorks cut its ties with Paramount, had involved Mr Spielberg’s studio raising $1.2 billion and would have extended for five years.

It was jettisoned when the global credit market collapsed. Commenting on the process of raising film funding, Mr Spielberg said: “The past year was like balancing ourselves on a sea of rolling logs. Thankfully no one fell in."

The deal that finally emerged is the biggest collaboration yet between Hollywood and Bollywood. JPMorgan Securities, the investment bank, arranged the syndication of about $325 million in debt to DreamWorks.

Reliance Big Entertainment, Mr Ambani’s Bollywood outfit, is matching that amount. Walt Disney will also lend $175 million to DreamWorks. Disney is to market and distribute DreamWorks' films globally, except in India where Reliance Big Entertainment will oversee marketing and distribution.

The deal allows DreamWorks to start afresh after it recently cut its ties with Paramount Pictures, which is owned by Viacom. "This venture with Reliance opens a new door to our future," Mr Spielberg said this year.

DreamWorks Studios was formed in 1994 by Mr Spielberg, Jeffrey Katzenberg, and David Geffen.The company won three consecutive Best Picture Academy Awards with American Beauty in 1999, Gladiator in 2000 and A Beautiful Mind in 2001. Other credits include Saving Private Ryan and Transformers, which were co-produced with Paramount.

Mr Spielberg recently approved a script for a remake of Harvey, a 1950 comedy that starred Jimmy Stewart, according to reports. The film, about a man and his imaginary 6-foot rabbit, is expected to begin shooting in January. It is likely to be the first DreamWorks film to be distributed by Disney.

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive