Plans to develop a sixth-generation British fighter jet to rival America’s have taken a step forward with a deal to form a new company comprising defence and aerospace firms from the UK, Italy and Japan.

BAE Systems, Italy’s Leonardo and Japan Aircraft Industrial Enhancement Company (JAIEC), which each hold a third of the as-yet-unnamed joint-venture is expected to be established by the middle of next year.

“The new business will bring together the significant strengths and expertise of the companies involved to create an innovative organisation that will lead the way in developing a next-generation combat air system,” said Charles Woodburn, the chief executive of BAE, whose profits have soared to record levels due to the war in Ukraine and conflict in the Middle East.

The new company will be responsible for the design, development and delivery of the aircraft, which has a target date of coming into service in 2035.

The firms involved called the establishment of the joint-venture a “pivotal moment” for the international aerospace and defence industry.

The headquarters will be based in the UK, with the first chief executive to come from Italy, and operations and joint teams working in each of the partner nations.

“This agreement is the result of an intensive journey made possible by pooling our mutual and shared experience,” said Roberto Cingolani, the chief executive at Leonardo. “This partnership not only enhances our technological capabilities but also reinforces our commitment to global security and innovation.”

The plan follows the establishment of the global combat air programme (GCAP) in 2022 that brought together the UK, Italian and Japanese governments and the weapons makers to develop an aircraft with “significant long-term export potential”.

BAE currently builds the Eurofighter Typhoon at its Lancashire factories, in collaboration with France, Germany and Spain, and makes parts for F-35, made by the US defence giant Lockheed Martin.

The GCAP venture could also be expanded to include Saudi Arabia. “The deal we have with Britain and Japan … I think will now be extended to Saudi Arabia,” the Italian foreign minister, Antonio Tajani, said recently.

Keir Starmer recently visited the kingdom, where he met the Saudi crown prince, Mohammed bin Salman, and discussed investment in the UK.

Kimito Nakae, the president of JAIEC, said: “As we now embark upon the exciting and important journey towards the success of GCAP, I acknowledge that the way might not always be simple and straightforward. However, we will not only deliver the GCAP on time but also at a level that exceeds all of our expectations.”