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

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

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.