The Financial Times is reporting that Britain is in preliminary discussions with Sweden about joint development of a new fighter aircraft.

Sources stressed that the UK has spoken to several countries about the project. Japan and Republic of Korea are also potential partners.

British officials are keen to ensure the RAF has the aircraft it needs and that manufacturers retains the skills and capability to make fighter jets.

Currently the UK is working with the US to build the F-35 fighter and with Germany, Italy and Spain on the Eurofighter Typhoon. UK also cooperates with Turkey for its indigenous fighter program TF-X.

A BAE spokesman said: 'We welcome debate about the need for next generation combat air systems across many nations. We have a strong history of collaboration with other nations and continue to invest in technologies so we can develop future aircraft.'