German Chancellor Friedrich Merz and French President Emmanuel Macron have come to the conclusion that aviation companies Airbus and Dassault cannot reach an agreement on jointly building the combat aircraft, said German public broadcaster ARD on its news website Tagesschau, quoting German government sources.

According to the report, Merz advised Macron not to pursue the construction of the fighter jet any further.

The two nations are expected to continue developing the "Combat Cloud," a network intended to connect military platforms and weapons systems, the report said.

Launched in 2017 by Macron and former German Chancellor Angela Merkel, the FCAS is considered a flagship European defense project to develop a next-generation air combat system.