The Government is to consider direct investment to build a new multi-billion-pound nuclear power station on Anglesey.

Business Secretary Greg Clark said the move was an "important next step" for the project at Wylfa.

Any direct investment in the project will be made alongside the Japanese government and Horizon Nuclear Power, a subsidiary of Japanese giant Hitachi, which is developing Wylfa.

Mr Clark said: "We will now be entering into negotiations with Hitachi on the next phase of the Wylfa project.

"Both the National Audit Office and Public Accounts Committee have recommended that the Government consider variations from the Hinkley Point C financing model in order to reduce costs to consumers."

Secretary of State for Wales Alun Cairns said: "There are few challenges more important than securing a sustainable energy future as part of our modern Industrial Strategy.

"By entering into negotiations, the UK Government is also highlighting the attractiveness of Wales as a place to do business and invest.

"This would be the biggest infrastructure project in Wales for a generation and could bring significant benefits to the economy through increased high-quality employment and supply chain opportunities."

Mr Clark said commercially sensitive negotiations with Hitachi will now start.

"This is an important next step for the project, although no decision has been taken yet to proceed with the project, and successful conclusion of these negotiations will be subject to full Government, regulatory and other approvals, including but not limited to value for money, due diligence and state aid requirements.

"It remains the Government's objective in the longer term that new nuclear projects - like other energy infrastructure - should be financed by the private sector.

"Alongside our discussions with developers we will be reviewing the viability of a regulated asset base model as a sustainable funding model based on private finance for future projects beyond Wylfa, which could deliver the Government's objectives in terms of value for money, fiscal responsibility and decarbonisation."

Welsh Conservative Energy spokesman, David Melding AM said: “This is a welcome announcement from the UK Conservative Government, one which will create thousands of jobs in North Wales during construction.

“Nuclear has an important role to play in the UK’s energy future as we transition to the low carbon economy, however, the government has always been clear that no technology will be pursued at any price: new nuclear must provide value for money for consumers and taxpayers.

“A combination of renewables and nuclear is the surest way to end our reliance on fossil fuels and meet our carbon reduction targets.

“Today’s announcement will provide low carbon and reliable electricity, whilst offering a real opportunity for Welsh businesses and young people in the area, with Wylfa Newydd also being well placed to exploit the well-skilled workforce already located nearby.

“Commercially sensitive negotiations with Hitachi will now commence and we look forward to seeing these concluded positively in the interests of Wales.”

Kate Blagojevic, head of rnergy at Greenpeace UK, said: "The notion that new nuclear will be good value for money is farcical when it's so much more expensive than cleaner, safer renewable alternatives that are faster to build.

"The economics are so weak that private investors have refused any involvement and the Government is having to bail out this disastrous project before construction has even begun. This should be a red flag to the Government that it is a terrible deal."

Caroline Lucas, co-leader of the Green Party, said: "This announcement takes us a step further towards a calamitous mistake by a Government who are utterly failing on energy policy.

"Taking a stake in this nuclear monstrosity would see taxpayers locked into the project, and paying out for a form of electricity generation that's not fit for the future."

Tom Greatrex, chief executive of the Nuclear Industry Association, said: "Today's announcement, which reiterated UK government support for civil nuclear as a vital element of a future low carbon power supply and confirmed the Horizon Wylfa Newydd project as the next element of our new build programme, is good news towards meeting our decarbonisation targets."