SYDNEY (Kyodo) -- Australia said Tuesday it will prioritize partnering with Japan in building its new fleet of general-purpose frigates, selecting Japan's cutting-edge Mogami-class frigate as the "preferred platform" for its AU$10 billion ($6.5 billion) program.

Australian Deputy Prime Minister and Defense Minister Richard Marles said at a press conference that the frigate designed by Mitsubishi Heavy Industries Ltd. is "the best frigate for Australia," citing the vessel's stealth capability and the fact that it can operate with almost half the crew of the Australian Navy's Anzac-class frigates.

Equipped with advanced radar and sonar systems and capable of launching more air defense missiles than the Anzac-class ships, Marles said he sees the Mogami as a modern ship "capable of engaging in air warfare and undersea warfare."

Japan had been competing with Germany to partner with Australia on its plan to build 11 general-purpose frigates to replace its aging Anzac-class frigates over the next decade.

The deal, if closed after an agreement on price, would mark a major arms export for Japan following an ongoing project between Japan, Britain and Italy to jointly develop a next-generation fighter jet.

In Tokyo, Japanese Defense Minister Gen Nakatani welcomed Australia's decision, saying it reflected Canberra's "strong confidence" in Japanese technology and its emphasis on the interoperability between the Self-Defense Forces and the Australian military.

"It is a big step that will elevate our security cooperation with Australia, as a special strategic partner, to a new height," Nakatani said at a press conference, adding that a final contract is expected to be concluded "early next year."

Speaking alongside Marles at the press conference in Canberra, Australian Defense Industry Minister Pat Conroy said that in terms of cost, capability and meeting the schedule for delivery, the Mogami-class frigate was "the clear winner."

The Mogami was also the most interoperable with existing Australian Defense Force assets, Conroy said.

Under the frigate plan, the first three ships will be built in Japan before construction is transferred to Western Australia's Henderson shipbuilding precinct for the remaining vessels. The first delivery is scheduled for 2029, with the vessels set to enter into service in 2030, according to Marles.

While emphasizing the decision was purely capability based, Marles acknowledged that the move represents "a very significant moment in the bilateral relationship" with Japan.

"Our relationship with Japan is growing from strength to strength, there is no country in the world with whom we have a greater strategic alignment," Marles said, revealing that in talks with Japanese Defense Minister Gen Nakatani on Monday night, the two shared their excitement at the envisioned procurement.

In a press release Tuesday, the Australian government said it aims to enter early into binding, commercial contracts for the vessels with Mitsubishi Heavy Industries and the Japanese government in 2026.