Germany plans to buy around 3,500 armoured vehicles from Finnish defence contractor Patria, according to the US business paper Bloomberg.
The newspaper's anonymous sources say the deal could be worth up to five billion euros.
The deal is intended to replace Germany's aging Fuchs armoured vehicles, it says. About 90 percent of the production of the AMV armoured vehicles purchased from Patria would be carried out in Germany, Bloomberg reported on Wednesday.
Patria has manufactured its eight-wheeled AMV armoured vehicles in Finland since 2004.
Patria benefits from higher defence spending
Germany joined the framework agreement for the multinational Common Armoured Vehicle System (CAVS) project earlier this year. This facilitates vehicle orders from Patria. Germany was previously reported to be planning to replace its Fuchs armoured vehicles with Patria's six-wheeled vehicles, on which the CAVS agreement is based.
In March, Germany approved a historic defence and infrastructure package, estimated to be worth more than one trillion euros. Finnish companies, especially Patria, are expected to benefit from Germany's stepped-up military spending.
Patria is half-owned by the Finnish state and half-owned by the Norwegian Kongsberg Defence & Aerospace, which is majority-owned by the Norwegian state.
