The two firms already have several agreements for mini cars and commercial vehicles.

Under the new deal, Nissan will provide Mitsubishi with a light van/wagon for the Japanese market.

Meanwhile, Mitsubishi will provide an SUV for markets in the Middle East.

The possibility of Nissan providing Mitsubishi with top-end segment models for the Japanese domestic market is also being discussed.

In addition, the firms are looking at two projects, including the manufacture of the current generation of Nissan Navara pickup truck at Mitsubishi Motors’ plant in Thailand, and the establishment of a 50:50 joint venture for product planning and engineering of mini cars for the Japanese domestic market.

Mitsubishi Motors president Osamu Masuko said: 'Amid the drastically changing economic and market environments, Mitsubishi Motors is in partnership with PSA Peugeot Citroën in the areas of SUVs and EVs, and is always searching for other optimal solutions suited for each area of our business.

'I believe that the expansion of our OEM agreement will complement each others’ regional characteristics and product lineup, and the one-ton pickup and mini car projects will be the best solution to strengthen each others’ competitiveness.'