According to Australian Broadcasting Corp. (ABC) the Defence Minister Christopher Pyne refused to meet top French officials visiting the country this week.
Naval Group was selected in 2016 to build 12 submarines for the Australian Navy, in the country's largest-ever defence contract worth $50 billion.
ABC claaims that Minister Pyne will only meet the chief executive of the majority French state-owned company once a crucial document, the strategic partnering agreement (SPA), has been signed.
Negotiations on that document have stalled and it is feared they may not be resolved before next year's federal election.
France and Australia are not expected to be ready before 2019 to sign the document, which is needed before detailed design contracts can be finalised, and submarine construction begins.