XI'AN - The world's largest furniture retailer IKEA will open an outlet in Xi'an, capital of northwest China's Shaanxi province, according to a Xi'an municipal government statement.

The outlet as well as its logistics center will be located in Fengdong new town in Xi'an, the statement said.

"We will sign an agreement with IKEA in early July, and preliminary work for the program is underway," said Yao Haijun, deputy director of the Fengdong new town's management committee.

Xi'an mayor Dong Jun said the outlet, IKEA's first in northwest China, will help boost the city's economic development.

At a meeting on Tuesday with Jon Frauenfelder, IKEA China's real estate expansion director, Dong said he hoped IKEA would speed up the program and bring its corporate culture to the ancient city.

Frauenfelder said the Swedish retailer planned to invest more in Xi'an over the next few years.

He added that IKEA has been looking for opportunities to build more outlets in China.

IKEA has opened 11 stores in 10 Chinese cities, and two other outlets are scheduled to open in Ningbo and Shanghai in July and August, respectively.