"We have achieved a breakthrough," German Defence Minister Boris Pistorius said at a Berlin press conference, flanked by his French counterpart Sebastien Lecornu.
"We have agreed on the distribution of all tasks for this major project," Pistorius told reporters.
How the work will be divided between the two nations is now "clearly defined" with "no room for misunderstanding", he said, adding that "there will be a 50-50 split" in the industrial production of the tank system.
Germany and France agreed in 2017 to jointly develop an advanced battle tank dubbed the Main Ground Combat System (MGCS), as a successor to the French Leclerc and German Leopard tanks from 2035.
The project is part of efforts to improve military cooperation between the neighbouring countries, and sits alongside another major project to develop a future generation of jet fighters known as FCAS.
But the tank plans have faced delays amid rivalry between French and German industrial companies, and different priorities in Berlin and Paris.
The project was originally led by defence industry firm KNDS, a tie-up between Nexter from France and Germany's KMW.
But the delicate balance was upset when Germany's Rheinmetall joined the project in 2019.
The push to unblock the project comes as Berlin and Paris are eager to show unity after a series of spats on how to support Ukraine in its war against Russia.
Lecornu acknowledged that the talks had been complex, likening it to a "difficult path" but one "that must be taken".
He hailed the innovative nature of the planned tank system, saying it would represent a "generational leap in terms of technology" with "impressive" connectivity.
The MGCS will consist not just of one armoured fighting vehicle but a system of manned and unmanned vehicles. It will include drones to protect the tank as well as the use of artificial intelligence and laser technology, the ministers said.
Pistorius said he planned to travel to Paris to sign a memorandum of understanding for the MGCS project on April 26.
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