In Ankara to strengthen ties with Turkey as she navigates Britain's departure from the European Union, Prime Minister Theresa May hailed the deal, saying it showed "that Britain is a great, global, trading nation and that we are open for business".

The deal, announced by May and Turkish Prime Minister Binali Yildirim, involves BAE Systems and TAI (Turkish Aerospace Industries) working together to develop the TF-X Turkish fighter program.

BAE Systems chief executive, Ian King, said the deal was the next step in deepening defence cooperation.

"It will also pave the way for a deeper defence partnership and could effectively make the UK Turkey's partner of choice, positioning it as a key aerospace technology exporter to Turkey," he said in a statement.

"The wider program could see the UK win contracts to provide engines, weapons, radars and sensors."

(Reporting by Elizabeth Piper; Editing by David Dolan)