(BSS/AFP) - France and Germany have agreed to abandon a joint fighter jet programme due to disagreements between the companies involved, Berlin said Monday in a blow to European efforts to boost defence cooperation.

The Future Combat Air System (FCAS) programme was launched in 2017 to replace France`s Rafale jets and the Eurofighter planes used by Germany and Spain.

The project was seen as a key test of European efforts to work more closely on defence as they seek to present a united front in the face of a hostile Russia at a time of souring ties with the United States.

But the multi-billion-dollar programme was beset by disagreements between the firms involved -- France`s Dassault Aviation and Airbus, which represents Germany and Spain.

A German government official told AFP that Chancellor Friedrich Merz and French President Emmanuel Macron had "reached the shared assessment that the companies will not be able to come together on building a joint combat aircraft.

"They acknowledge this reality."

The official however said other parts of the wide-ranging project will continue.

"The actual core of FCAS is to be continued as a European system," the official said, describing it as a "nervous system that networks aircraft, drones and other components into an integrated whole".

The French and German defence ministries are set to draw up a plan for defence cooperation "focused on a few realistic and relevant projects" at a forthcoming meeting, the official added.

- Long-running disagreements -

The news comes despite calls for Europe to integrate its fragmented militaries more closely as geopolitical turmoil worsens.

Russia`s war against Ukraine is in its fifth year, while European countries are increasingly worried about US security commitments to the continent under President Donald Trump.

There had been last-ditch efforts to salvage FCAS.

In March two mediators -- one from France and one from Germany -- were tasked with coming up with proposals to rescue the initiative.

But they were unable to do so, while the head of Dassault Aviation continued to insist that the firm could go it alone on the project and was not in favour of it being "co-managed".

The project`s demise comes despite both Merz and Macron insisting publicly they were determined for it to succeed.

The German leader had said earlier this year that he would "do everything in my power, and fight until the very last moment, to get joint European projects off the ground here, and above all German-French projects".

Macron -- speaking in April after talks with Merz -- had denied then the project was dead.

"We are continuing to move forward. Europe has never needed unity, greater independence and greater sovereignty more than it does now," he said.