As part of the agreement, AvtoVAZ will provide 25 percent of the funding while Renault and Nissan will contribute with the remaining 75 percent, according to Reuters.
The five models will be produced by 2014, the source wrote. AvtoVAZ plans to roll out around 445,000 cars next year, an increase of 145,000 from this year's production goal.
"Despite what I'm often hearing, we don't want the Lada brand to disappear ... We are transferring our technology to AvtoVAZ and I'm confident that new high-quality Russian cars will be leaving the assembly lines of AvtoVAZ starting from 2012," Renault Senior Vice President Christian Esteve said according to Itar-Tass news agency.
Russian Prime Minister Vladimir Putin demanded the French manufacturer last month to step in and help AvtoVAZ and even admitted that the local government might approve a new loan for the automaker to start restructuring. AvtoVAZ plans to fire more than 27,000 employees by the end of the year, as it struggles to cope with high costs.
"They confirm that they are ready in invest in AvtoVAZ's development and provide the most advanced technologies, which will be evaluated in the most transparent way," First Deputy Prime Minister Igor Shuvalov told reporters last week. "The most important thing is that Renault has confirmed strategic interest in the development of Avtovaz. Renault is ready to invest in Avotvaz," he added.