Federal Treasurer Wayne Swan has approved a bid for Australia's largest cotton enterprise by a consortium made up of Chinese and Japanese investors.
Mr Swan says textile manufacturer RuYi, owned by investors in China and Japan, will initially have an 80 per cent stake that will reduce over time.
He says the consortium has given undertakings on a range of matters including employment, management and water use.
"Critically, RuYi has undertaken to sell down its interest to no more than 51 per cent within three years," Mr Swan said in a statement.
Lempiere, an Australian-owned wool company, will initially own the other 20 per cent of the company.
Cubbie Station, near Dirranbandi in south-west Queensland, went into administration in 2009 with debts of more than $300 million.
Creditors including the National Australia and Suncorp banks have since bankrolled cotton crops to try and recoup losses.
Mr Swan says a successful bidder in the sale process will end a long period of uncertainty and is in Australia's national interest.
"In the event the consortium is successful in acquiring Cubbie Group, it will report to the Foreign Investment Review Board every 12 months on its progress on meeting its undertakings," he said.
"The Government welcomes foreign investment in Australia and continues to ensure that investments are consistent with Australia's national interest."