Mazda says it plans to combine the hybrid system taken from the Prius with its next-generation SKY engine that is currently under development, with the resultant hybrid vehicle set to go on sale starting in Japan by 2013.

The new vehicle will sit within Mazda's "Sustainable Zoom-Zoom" long-term vision for technology development. Under this programme, Mazda aims to increase the average fuel economy of Mazda vehicles sold globally by 30% by 2015, compared to its 2008 level. The carmaker says it will adopt a "Building Block Strategy" to enhance the core aspects of its vehicles – including engines, transmissions and weight reduction – and then progressively add electric devices such as idling stop, regenerative braking and hybrid systems.

The announcement comes after the two carmakers started negotiations last spring following Mazda's decision that the agreement would provide with the quickest way to bring its own hybrid to market.

Toyota said that it will consider requests from other companies to supply hybrid technology.