Greece, France to announce warship deal

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The leaders of Greece and France are expected to announce a major, multibillion-euro deal in Paris involving the acquisition by Greece of at least six French-built warships, Greek state ERT TV reported.

Greece planned to acquire three French FDI frigates - with the option of later buying a fourth -and another three corvettes, ERT reported on Monday.

Greece has already bought 18 French Rafale fighter jets and plans to purchase another six under a program to modernise its armed forces amid tensions with neighbouring Turkey.

Prime Minister Kyriakos Mitsotakis, who flew to Paris on Monday for talks with French President Emmanuel Macron, said in an interview with ERT that "we are heading towards a substantive deepening of the strategic cooperation between Greece and France".

He declined to comment on the reported warship deal, which Greek media say would be worth about five billion euros ($A8 billion), saying only that announcements would be made on Tuesday.

"I have no intention to enter an arms race with Turkey," Mitsotakis said. "But there are key issues of modernising our military after a decade of (economic) crisis."

Tensions with historic regional rival Turkey have increased in recent years over gas exploration rights in the eastern Mediterranean and waters between the two countries.

Greece had announced plans to upgrade its fleet, discussing potential frigate purchases with countries including France, the US and Britain.

Greek media said the deal that Mitsotakis and Macron were expected to announce at the Elysee Palace in Paris on Tuesday followed an improved French offer.

They linked the offer with France's loss of a $US66 billion deal this month to sell diesel submarines to Australia, which instead chose to acquire nuclear-powered submarines provided by the US.

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