Universal’s C¥50bn US$7.85bn (€6.93bn, £5bn) largest theme park ever will open in China in 2019, after the company received the green light from Beijing authorities.

A contract has been signed between the Chinese government and Universal Studios to set up the theme park in the Chinese capital’s east suburban district of Tongzhou. Universal Studios Beijing was initially approved by the National Development and Reform Commission in September 2014, with the official signing taking place on 13 September in New York at the headquarters of Comcast NBCUniversal.

The contract signing – which has been more than a decade in the making – will now see a joint venture company known as Beijing Shouhuan Cultural Tourism Investment Co formed to carry out construction. The development will cover 2sq km (0.77sq miles) and will include in its first phase the theme park, the world’s first Universal-themed resort hotel and a retail entertainment complex, all to be completed within five years. A second stage of development in 2020 will include a second theme park, a waterpark and five more resort hotels.

According to the culture and tourism administration bureau of Tongzhou district, traditional and modern Chinese culture elements will be incorporated into the Hollywood-themed park to boost tourist appeal to foreign visitors, while the city’s Subway Line 7 will be extended to reach the park to help meet tourist demand. Director Steven Spielberg will have a role in the park’s design, though it is not known his exact title or how much control he will have over final design.

The park will be the company’s fourth Universal theme park in Asia, following the well-established sites in Japan and Singapore and the forthcoming Universal Studios park in South Korea.