The announcement comes as the manufacturer reveals it is producing 500,000 units annually for the first time in their history, an all-time industry record.
Prime minister David Cameron said: "This investment is excellent news for the North East and another vote of confidence for UK manufacturing.
"The continued success of Nissan in the UK demonstrates the strength of the car industry here - and its importance - as we rebalance and grow the economy.
Business secretary Vince Cable, who will attend the plant today, welcomed the fresh investment and said it was positive for the wider British economy.
"Today's news is a strong endorsement of the quality of Britain's car industry which is creating jobs, taking on apprentices and contributing to building a stronger economy."
