Polish state-owned defense company Polska Grupa Zbrojeniowa (PGZ) and French shipbuilder DCNS signed an agreement under which they would cooperate on future naval projects in Poland.

The focus of this memorandum of understanding are the three submarines that Poland intends to acquire under the Orka programme.

PGZ further noted that the agreement could see the two companies work together on planned coastal defence ships and minesweeper patrol vessels.

Poland is yet to make a decision on who will build the submarines with Saab and TKMS being the other two contenders.

The latest agreement is a sign of improved relations between France and Poland after Poland last year decided to pull out from a $3.4 billion deal for helicopters that were supposed to be supplied by French Airbus.

Arkadiusz Siwko, CEO of PGZ said that the agreement was a proof of good relations between the two sides adding that it opened doors for further cooperation.