Alstom has signed a ‘memorandum of understanding’ with Iraqi officials to build a high speed rail line between Baghdad and Basra.
Talks will be held for 12 months to come to a final agreement.
The deal is thought to include the construction of the rail line along with trains and service.
Once completed, the 650km rail network will serve trains travelling at speeds of up to 250km.
As well as Baghdad and Basra, the cities Karbala, Najaf, Samawah and Moussayeb will be served by the rail link.
French junior transport minister Thierry Mariani, who announced the deal at the Paris International Airshow on Friday, said he would travel to Iraq in September or October, but said no financial details were available yet.
