Australia to do defence deal with Denmark

AUSTRALIA will team up with Denmark on producing and procuring defence equipment, Defence Minister Stephen Smith says.

Mr Smith hosted his Danish counterpart Nick Haekkerup in Perth on Friday.

The minister said Australia and Denmark will sign a defence materiel memorandum of understanding.

"(It) will foster co-operation in the use of defence technical resources and encourage and promote discussion on joint development, production and procurement of defence materiel," Mr Smith said.

The pair also discussed Australia and Denmark's respective contributions to the war in Afghanistan and plans for a 2014 withdrawal.

Denmark has 567 troops in the Helmand Province of Afghanistan while Australia has 1094 in Uruzgan Province.

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