Plans have been confirmed for the opening of a Disneyland theme park in Shanghai, China.

The Walt Disney Company has cleared an important hurdle in its efforts to build a multi-billion dollar theme park in China’s most populous city, as it signed a detailed agreement with state-owned Shanghai Shendi Group Corporation.

Shanghai Disneyland will be located in the city’s Pudong district and is estimated to cost around US$3.6bn to build.

The park is scheduled to open in 2014 and will be the group’s fourth outside the US.