The new model, which has the project name "Blue Car," will be built at Daewoo's Bupyong plant, near Seoul.
The plant also will build the first Daewoo SUV and the Saturn Vue successor on the same "Theta" platform.
Production start-up is scheduled for January 2006. The European market launch of the Opel version is planned for summer 2006.
The European sales targets for the Daewoo and Opel SUVs are 20,000 units a year.
The basic price for the Opel model will be around 21,000 euros - around the same price as the Toyota RAV4.
The Opel-Daewoo cooperation might be extended to the Vectra segment.
"From 2008 there might be a Daewoo built on the Epsilon-2 platform," said GM Europe president Carl-Peter Forster.