The two firms previously signed a letter of intent in July on a partnership on engines.

In a statement, the firm said the technical partnership will ‘allow Mercedes-AMG and Aston Martin to develop bespoke V8 engines supporting Aston Martin’s launch of a next generation of models that will incorporate cutting edge technology and newly-developed engines, combining high performance and fuel efficiency’.

Daimler will receive up to 5% non-voting shares in Aston Martin without cash consideration in several steps following the progress of the technical partnership.

The two carmakers are also looking to sign a partnership deal on the supply of electric/electronic components as well as investigating additional areas of cooperation in the future.

A spokesperson for the Aston Martin board said: ‘Our company is this year celebrating its centenary, and the partnership agreed today underpins prospects for Aston Martin’s bright, vibrant and dynamic second century in the sports car business. This strategic collaboration for Aston Martin will, in our next generation of luxury sports cars, offer our customers increased performance and state-of-the-art features whilst retaining the unique character and style of an Aston Martin.’