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Fiat and Suzuki are set to link up in a deal that will see the Japanese car manufacturer build Fiat-designed diesel engines under license in the Far East.

According to Fiat a letter of intent has been signed between the two firms that allows Suzuki to produce 100,000 of Fiat's 2.0 litre JTD Multijet power plants for use in its own cars.

The production deal will commence in 2010 and allows for volume to be increased at a later date should the two firms agree.

Until Suzuki is ready to start production itself, Fiat will supply the manufacturer with finished diesel units as well as providing fuel injection technology and know-how.

Fiat's JTD Multijet diesel is currently used in a number of different vehicles throughout the Fiat group, from the functional Fiat Duplo to the stylish Alfa Romeo 156 and 147, where the 2.4 litre version produces a very respectable 210bhp.

In fact, the Multijet system was the first that Alfa was happy to market in the UK as it felt that nothing which had gone before produced adequate performance for the marque's sporting image.

Suzuki is yet to confirm which of its models will receive the 2.0 litre Multijet or where production will take place come 2010.