The deal was signed with the Nuclear Decommissioning Authority (NDA) following the successful completion of site studies by NuGen, which validated the north and west of the Sellafield complex as being suitable for development.
The company has stated it is 'confident' the site is suitable for construction of three AP1000 reactors, as all criteria has been satisfied.
It is understood Moorside will deliver 7% of the UK's future electricity needs.
The NuGen Board approved the land contract signing at a meeting in Tokyo.
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Chief Executive, Tom Samson, signed the agreement with the NDA's Chief Executive, John Clarke.
Mr Samson said: "This is a key moment in our Moorside Project journey. Our board has reached a decision of significance which confirms Moorside is suitable, against criteria at this stage of the development. NuGen, our vendors and our expert partners are all confident we can build three reactors on the site."
"This is great news for the North-West, and particularly for West Cumbria, the UK’s nuclear heartland."
Site characterisation studies will continue at Moorside in the autumn and will feed in to detailed planning and site layout work.
Energy Minister, Andrea Leadsom, welcomed the announcement.
She said: "Backing the next generation of nuclear projects is a key part of our long-term plan to power the economy with clean, secure energy and keep bills as low as possible for hardworking families and businesses."
"We want the recovery to benefit all parts of our country, and Moorside will be a major infrastructure project that creates jobs and economic security for thousands of people and helps to deliver the Northern Powerhouse."
(LM/MH)
