France and Britain signed an accord to jointly construct three aircraft carriers on March 6, with France agreeing to pay 100 million pounds ($176 million) in phases towards the design work.
Britain hopes to deliver the first of two new aircraft carriers to the Royal Navy sometime around 2012, while France wants one new ship by about 2014.
"This project is important to both our countries and the signing of this agreement today is a major step forward for our cooperation on future aircraft carriers," British Defence Secretary John Reid said at a joint signing ceremony with French counterpart Michele Alliot-Marie.
The two were in the Alpine city of Innsbruck for an EU defense ministers meeting.
The deal, which was first unveiled in January, allows for design work to continue for the next year, at which point France would decide whether to invest the third and final payment of 45 million pounds toward the project.
The British ships will carry versions of the F-35 Joint Strike Fighter, while the French plan to use the Rafale fighter jet built by Dassault as well as unmanned air vehicles.
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