The exercise, codenamed Seawolf 2003, will involve training exercises with submarines, aerial defence and coordination between naval and air elements, the statement said.

It added that frigates, submarines, assault boats, planes and helicopters would take part in the manoeuvres, but did not give numbers.

Greece and Turkey have long been at odds over territorial rights in the Aegean Sea that separates them.

In May, the two countries agreed on three confidence-building measures, involving more frequent contact between their two armies, to reduce tensions.

WAR.WIRE