Defence Secretary Liam Fox has ruled out the UK sharing aircraft carriers with France as part of closer defence co-operation and efforts to save money.
Dr Fox, who is in Paris for talks with his French counterpart, said such a move would be "unrealistic".
The Ministry of Defence, like nearly all government departments, is facing a significant cut in its future budget.
Dr Fox wants to save money in procurement and administration while prioritising front-line operations.
He has emphasised the need for much closer working with key European allies, such as France.
But at a press conference with French Defence Minister Herve Morin, Dr Fox dismissed suggestions the two could share aircraft carriers as a cost-saving measure.
However, the two men said they would look at ways of sharing their respective fleets of A400M, a plane designed to transport soldiers and heavy equipment to combat zones.
All British government departments, except international aid and health, are facing budget cuts of between 25% and 40%. Defence, although unlikely to be among the hardest hit, will not be immune.
This has led to speculation that plans for two new aircraft carriers by 2018 - costing £5bn - could be scaled back.
Ministers have said the UK's mission in Afghanistan will remain a priority, but Dr Fox has declined to rule out cuts in overall troop numbers across the armed forces.
The Treasury has also insisted that the MoD must foot the bill for renewal of the Trident nuclear weapon system.
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