Toyota is to license its Prius-based hybrid technology for use in a forthcoming Mazda hybrid.
Mazda says the Prius technology will be combined with its next-generation Sky engines, with the resulting hybrid on sale by 2013.
Mazda began negotiations with Toyota last spring because it believes licensing the company's hybrid technology is the quickest way to bring its own hybrid to market.
Mazda wants to improve the average fuel economy of its vehicles by 30% by 2015.
Toyota said it will consider requests from other companies to license its hybrid technology, but wouldn't comment on who it is currently in negotiations with.
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