British Prime Minister Keir Starmer and former German chancellor Olaf Scholz had made a joint declaration in August, promising closer cooperation on issues from trade to security.

The broad agreement is being finalised, according to Politico, and a key area is defence.

It will include a section stating that any strategic threat to one country would represent a threat to the other and the agreement is expected to be signed on July 17, it reported, citing two London-based officials.

Although both countries are committed to Nato, the defence agreement highlights a shift among European states, including Germany under chancellor Friedrich Merz, to work more closely together and rely less on the US under President Donald Trump.

Neither the German defence ministry nor the chancellor’s office was immediately available for comment.