Canada's government has chosen Germany's ThyssenKrupp Marine Systems (TKMS) as the preferred builder for its next-generation submarine fleet, according to a report citing sources.

Prime Minister Mark Carney announced the plan to acquire diesel-electric submarines on Monday afternoon, outlining a project to replace the aging Victoria-class vessels and confirming the selected partner for the Canadian Patrol Submarine Project (CPSP).

The substantial procurement contract, valued at up to 60 trillion won, saw final bids from South Korea's Hanwha Ocean and Hyundai Heavy Industries, alongside the German firm TKMS; the two Korean contenders were ultimately unsuccessful.

Prime Minister Carney disclosed the decision before departing for the NATO summit in Turkey. This procurement marks Canada's first purchase of new submarines since the 1960s and represents the largest single order in the nation's history, involving 12 vessels.