The new warehouse is set to be based at the iPort site in Rossington, and is expected to open next summer.
It will be Amazon’s third ‘fulfilment centre’ in Doncaster, after the online retailer’s facility in Balby Carr Bank opened in 2010 and a second in Water Vole Way opened in autumn last year.
John Tagawa, Amazon’s vice president of UK operations, said: “We are delighted to announce that we will be creating 500 new permanent full-time jobs with competitive pay and comprehensive benefits starting on day one by opening our third fulfilment centre in Doncaster in summer 2017.
“We already have two fulfilment centres in Doncaster so know from experience that there is strong talent in the region who would be well suited to working for Amazon.”
The iPort rail freight interchange will comprise six million square feet of warehouses handling shipping containers arriving on trains from all major UK ports and the Channel Tunnel.
The site is also linked with Junction 3 of the M18 via the new Great Yorkshire Way road, which opened in February.
Mayor of Doncaster, Ros Jones, said: “This is wonderful news and further evidence of the importance of Great Yorkshire Way as a driver of jobs and economic growth across the borough and the wider region.
“The £500m iPort development always promised to deliver thousands of new private sector jobs and this announcement by Amazon to create a new fulfilment facility at the site, which has been facilitated by our Business Doncaster team, is another major success story for the scheme.”
And the CEO of Doncaster Chamber, Dan Fell, said: “The creation of 500 new jobs at Amazon is, of course, highly welcome and a fillip to the local economy in what are uncertain times.
“The iPort is another key development for Doncaster and its economy.”