The Walt Disney Co. said yesterday it would submit plans to build its first theme park in mainland China, targeting one of the largest and increasingly affluent markets in Asia.

The entertainment giant released a statement confirming its plans, as news broke that Disney was working with the Shanghai municipal government to build a $3.59 billion park to open as early as 2014. It would be Disney's fourth theme park outside the U.S, after Paris, Tokyo and Hong Kong.

A Disney spokeswoman portrayed the development as a milestone in a lengthy review process, which ultimately needs to be negotiated and approved by the central government. But no deal is in place, and the project is yet to be approved.

"Discussions have been ongoing about the feasibility of a theme park project in China," said Leslie Goodman, a spokeswoman for Walt Disney Parks and Resorts. "We worked on a joint application report with the Shanghai government which will be submitted to the central government for review."

The Shanghai Securities News, which is affiliated with the state-run Xinhua News Agency, reported earlier this week that Disney had concluded negotiations on building a theme park in Shanghai — a report the company denied. The news organization predicted an announcement would be made soon.

Kang Fuxiang, chief of Qigan village near Shanghai's Pudong airport, where the park would be built, said yesterday that he was told by local city officials that a project deal was signed this week that included basic terms. Although the first phase would cost about $3.5 billion, Kang said he understood the total project investment would exceed $5 billion.

"Of course this is great news," he said. "We've been waiting for many years."

Kang said he was told that relocation of villagers would likely begin in the first half of this year, so construction can begin in the largely wooded and farm lands.

The Wall Street Journal reported yesterday that Disney and the Shanghai government signed a proposal outlining the legal and financial framework for a theme park. Disney would take a 43 percent equity stake in Shanghai Disneyland, while a joint-venture holding company owned by the local government would own the majority 57 percent, the newspaper reported.

The first phase, to be built on about 1 square mile, would include a theme park, hotel and shopping district, costing $3.59 billion and constructed over six years on a site near Shanghai's Pudong International Airport, the newspaper reported.