"Suzlon signed a binding agreement with Centerbridge for Euro 1 billion," the company said in a statement.
The deal is subject to regulatory conditions, it said.
"We are pleased to announce this development which is in line with our strategic initiative to strengthen balance sheet," Suzlon Chairman Tulsi Tanti said.
The proceeds will be utilised towards debt reduction and business growth in key markets like the US, India and other emerging markets.
Senvion SE will give Suzlon licence for off-shore technology for the Indian market.