German Chancellor Friedrich Merz and French President Emmanuel Macron have agreed to abandon the program, worth nearly SEK 1,100 billion.
The reason is said to be a long-standing and insurmountable disagreement between the companies involved.
The so-called FCAS program was launched in 2017 to replace France's Rafale fighter jets and the Eurofighter used by Germany and Spain in the future.
But the French company Dassault and Airbus, representing Germany and Spain, have different views on the program.
However, a German government official says that other parts of the major project will continue, including drones and combat control systems.
