A new advanced jet fighter programme is set to be based in Britain, putting London at the forefront of a huge international project, sources claim.
Japan, Britain and Italy are said to be planning to choose the UK as the headquarters for their next-generation fighter programme.
In December, the three countries launched the Global Combat Air Programme (GCAP) to work in collaboration on deploying an advanced aircraft by the middle of the next decade.
It has been claimed that Japan and Britain will focus on the design and manufacturing on the programme with the UK likely to give it a leading role in organising the project due to its more recent experience in jet fighter development.
It has been claimed that Japan and Britain will focus on the design and manufacturing on the programme with the UK likely to give it a leading role in organising the project due to its more recent experience in jet fighter development
PA
"The headquarters will be in Britain, but for the sake of balance, someone from Japan could head it," one source said.
In an email, Japan's defence procurement agency said: "Discussion about the headquarters is ongoing and we are unable to comment on the location."
A spokesperson at Britain's defence ministry added: "No final decisions have been made on the locations and we will not comment on speculation."
The Italian defence ministry is reportedly set to pay for about a fifth of the overall development cost.
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However the country's government dismissed the claims as "speculative".
The head of Italian defence and aerospace group Leonardo said Saudi Arabia would not be a core partner in the project, after it was said to be pushing to join.
Sources say GCAP could welcome the country in a more limited role as it would bring money and a lucrative market to a project expected to cost billions of pounds.
The United Arab Emirates has also shown interest, the sources added.
An image of an RAF fighter jetMODThere had been conversations on possibilities with Saudi Arabia, but no decision beyond that, Richard Berthon, director of Future Combat Air at Britain's Ministry of Defence, said at London's DSEI arms show last week.
"It was made clear in London that it could possibly come in at a later date," an Italian defence ministry source said, declining to be identified because they are not authorised to speak to the media.
Britain's lead company in GCAP is BAE Systems PLC, with Mitsubishi Heavy Industries representing Japan.
