The British government has decided to remain on board a joint fighter jet development program with Japan and Italy following a review of defense expenditure, amid speculation the plan could be axed, a source close to the matter said Saturday.

The Labour government under Prime Minister Keir Starmer now deems the plan an important defense project, significant for diplomatic relations with Japan and Italy and for creating many new jobs, the source said.

The British government will review its defense strategy through the first half of 2025. While it is also involved in developing nuclear submarines for the AUKUS project with the United States and Australia, concerns have emerged over the substantial costs associated with next-generation jet development.

From next year, the fighter program will enter a new phase, starting with the full-scale design of the aircraft.

The plane is expected to be deployed by 2035 and will be equipped with artificial intelligence and advanced stealth technology.

Masami Oka, a former Japanese vice minister of defense for international affairs, has been appointed to lead the international organization that will manage the project, called the Global Combat Air Program.

The organization called GCAP International Government Organization, dubbed GIGO, is expected to be established in Britain later this year.