The new tank is meant to become the successor to Germany's Leopard 2 model, the newspaper said.
The alliance of partners from Germany, Italy, Sweden, and Spain plan to request funding from the European Defense Fund, totaling a three-digit million amount, sources were cited as saying.
The new project comes amid reports that Germany's other joint project to develop the MGCS tank with France is on the verge of collapse due to disagreements between Berlin and Paris.