In the 1930s the engineer founded Cheltenham-based Dowty Aviation, that went on to develop parts for military aircraft and even Concorde.
At its peak, the Gloucestershire company employed more than 15,000 people in the UK.
Former employee Martin Robins said the statue will keep his story “fresh for a number of generations”.
Dowty Aviation was known for producing aircraft components including hydraulic systems and undercarriage units.
The life-size bronze statue of Sir George Dowty will feature a wheel from a Lancaster bomber.
Sir George designed the undercarriage of the aircraft, which was used as the RAF’s principal heavy bomber during the latter stages of World War Two.
Mr Robins said: “If it [the Lancaster] had failed, goodness knows what would have happened”.
He added that Sir Dowty was a “very quiet, unassuming man who didn’t promote himself” despite setting up a “world-renowned engineering business”.
Sir George Dowty’s son George Dowty said he is “delighted” that his father is being honoured with a statue, which he described as a “splendid tribute to his father”.
The statue is due to be unveiled in the spring and, subject to planning permission, is likely to be placed in Pershore, Worcestershire, where Sir George was born, raised and buried.
Credit: BBC News Website link to story.