Toyota is to license its Prius-based hybrid technology for use in a forthcoming Mazda hybrid.
Mazda says the Prius technology will be combined with its next-generation engines, with the resulting hybrid on sale by 2013.
These engines are known are part of Mazda's Sky project, which will come on stream in 2011 and offer petrol and diesel economy improvements of at leats 15 per cent.
Mazda says it believes licensing the company's hybrid technology is the quickest way to bring its own hybrid to market.
Mazda wants to improve the average fuel economy of its vehicles by 30 per cent by 2015.
Toyota said it will consider requests from other companies to license its hybrid technology.