Australia Prime Minister Anthony Albanese said on Saturday that his government had reached a 555 million euro ($583.58 million) settlement with France's Naval Group over the decision last year to scrap the French submarine deal.
"This is a fair and equitable settlement," said Albanese in a news conference.
He said the settlement followed discussions with French President Emmanuel Macron and he thanked him for the cordial way in which the relationship between Australia and France was being re-established.
Australia last year scrapped a multi-billion-dollar order for submarines with French military shipyard Naval Group and opted instead for an alternative deal with the United States and Britain. The move enraged Paris and had triggered an unprecedented diplomatic crisis.
