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Britain and France have signed a treaty agreeing to greater defence cooperation including the joint testing of nuclear warheads.
David Cameron and French President Nicolas Sarkozy sealed the deal when they met in London today.
The key parts of the treaty include co-ordination of Britain and France's carrier fleet to ensure there is always one ship available to be deployed at any time.
Following the coalition's defence review The Royal Navy will build two new carriers but only one will be kept operational and it will be re-engineered to allow French and American jets to launch from it.
France has one operational aircraft carrier, it's flagship nuclear powered Charles De Gaulle.
The deal will also lead to the creation of a Combined Joint Expeditionary Force training British and French troops to deploy on operations together.
And the two countries will develop a new nuclear testing facility at the Atomic Weapons Establishment at Aldermaston and at Valduc in France.
Britain and France are by far the biggest military powers in the European Union, and are the only two member states to have a nuclear deterrent.
While several Ango-French deals have been done in recent years, including the signing of a so-called "entente formidable" in 2008 that called for a greater pooling of military resources, today's deal is by far the most far reaching.
Speaking on BBC Radio 4's Today programme this morning defence secretary Liam Fox said the deal was good for both countries.
"We're talking about joint expeditionary forces with our forces in all three services working together to develop common practices, better inter-operability and to look to see where we get better common equipment," he said.
"That makes perfect sense in a world where resources are tight but our interests are increasingly common."
But he said the deal ensured Britain maintained "sovereign capability" as it was an agreement between the two nations rather than underneath the umbrella of the European Union.
Fox also said the deal had been made easier by President Sarkozy's decision last year to return France to Nato's military command. Then president Charles De Gaulle removed his country from the structure in 1966, claiming it undermined France's sovereignty.

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