PARIS (Reuters) - French engine maker Safran and German counterpart MTU Aero Engines have reached an agreement to cooperate on a military jet engine, removing an obstacle to developing a Franco-German fighter, sources familiar with the matter said.
The agreement, which follows a letter of intention signed in February, calls for Safran to be the prime contractor with MTU as "main partner" they said. A deal had been held up amid reports of opposition in the German parliament.
The agreement covers the current research phase and calls for a joint venture to be set up in the second half of 2021 to handle future proposed work.
(Reporting by Tim Hepher; editing by Louise Heavens)