According to the ‘Sunday Times’, JLR executivesÂ have been weighing up bids from Slovakia, Hungary, the Czech Republic and Turkey for the factory, which will make about 200,000 cars a year.
Senior industry sources told the newspaper that Poland had offered “huge” incentives.
Jaguar produced about 450,000 vehicles last year, but plans to expand to 1 million.
The huge expansion drive has seen its three British factories in Solihull, Castle Bromwich and Halewood pushed to capacity.
The company opened a factory in China last year and another is under construction in Brazil.
A decision on Poland could be announced within weeks, although sources said Slovakia remained an outside possibility.
Local reports suggested the plant could be built in Krakow at a cost of about 1.2 billion pounds.
Next on the list is expected to be a factory in the US or Mexico.
The overseas drive reflects Jaguar’s desire to increase production while keeping a tight lid on costs, the newspaper said.
Poland offers a source of skilled but affordable labour, a ready-made supply chain and a government prepared to offer significant launch aid.
A JLR statement said “Jaguar Land Rover continues to evaluate opportunities around the world. Europe is just one of the places under consideration. No decisions have been taken”.