The Australian government aims to sign binding, commercial contracts with Mitsubishi Heavy and the Japanese government in 2026.

Australia says it has accepted a Japanese company's bid for a lucrative and hotly contested contract to build Australian naval vessels, expected to be worth 10 billion Australian dollars ($6.5 billion).

Japan’s Mitsubishi Heavy Industries will deliver the first of Australia's new navy frigates under a A$10 billion ($6.5 billion) deal, Australian Deputy Prime Minister Richard Marles said on Tuesday.