A BATTLE between two engineering giants to build the biggest warships in the UK will come to a climax on Thursday when ministers are expected to announce the victor.

Rumours of a possible alliance between the companies vying to build two aircraft carriers worth £3bn for the Royal Navy have been dismissed by one of the competitors as "unlikely".

But even if Thales Naval is successful in the bid, BAE Systems will get about 40 per cent of the work at its shipyards on the Clyde.

"There has been talk of an alliance approach but there has been no substantial discussion with the ministry and none whatsoever with BAE," said Peter Robinson, managing director of Thales Naval.

"It is a purely hypothetical approach, which has been suggested and we have said we will consider that option.

"But for that to become a reality, it would require a lot of detailed discussion and that has not happened - so it is unlikely."

About 5,000 jobs could be created in shipyards on Tyneside and Teesside to build the 300m-long vessels.

The knock-on effect could mean another 5,000 as local suppliers would be used for materials and computer systems on board the 50,000-tonne warships.

They will rival the US Navy's nuclear-powered Nimitz and Enterprise class carriers in size, and will be able to carry 50 vertical take off aircraft and troop-carrying helicopters.

Lisa Hilary-Tee, spokesman for BAE, said: "The discussions we have been having with the Government are confidential and ongoing until a decision is made.

"We are confident about our position because we believe we have put in a strong bid in terms of strong commercial strategy and our technical proposals."