The deal, unveiled at the Eurosatory defence and security exhibition in Paris, will see Renault produce 1,000 units a month of Thales' Toutatis remotely-operated short-range drone by next year at one of the automaker's factories.

France is seeking to move to large scale domestic production of multi-environment drones which have become an integral part of modern combat, Thales and Renault noted in a joint statement.

The so-called loitering munition is designed to wait until a target is located and then neutralise it with precision.

Renault will contribute mass production processes with Thales supplying military technology, including remotely operated munitions and secure communications links.

"We realised that if we wanted to produce large quantities quickly, manufacturers were probably better placed than Thales," said Thales' CEO Patrice Caine.

"We turned to Renault Group pretty quickly," with the two groups being "perfectly complementary," Caine added.

"Renault brings the ability to create disruptive products at lower costs than a defence contractor and to manufacture on a large scale," said Renault chief Francois Provost.

The existing prototype Toutatis drone can be carried by a soldier or deployed from vehicles, aircraft or ships.

It is resistant to electronic jamming and can destroy armoured vehicles and operate in swarms with other drones. The final decision to fire remains under human control, Thales stresses.

The two groups had Monday unveiled their "4 Troop" hybrid tactical prototype vehicle at Eurosatory, which will be built using standard Renault vehicles fitted with Thales technologies, incorporating drones, sensors and secure communications.

The collaboration with Thales marks Renault's latest foray into defence following the recent announcement, of a partnership with French contractor Turgis Gaillard to mass-produce Chorus large long-range strike drones capable of carrying a significant explosive payload.

Manufacturing of the Chorus is due to begin in Le Mans before the end of this year.

According to daily Le Parisien, France's defence procurement and technology agency DGA has already placed a firm order worth 90 million euros for the drones, although Renault has not confirmed the sum.

Media reports also say Renault has signed an agreement with the Arquus group, a subsidiary of the Belgian firm John Cockerill, to develop a military ground drone roughly the size of a small car, based on the Dacia range.

Renault has not confirmed as much but the Belgian group told AFP on Monday that a partnership in the field would be announced "later," confirmed the project involved an automotive partner, which it did not name.

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