BRITAIN'S defence chiefs want to see a tie-up between Hamp-shire shipbuilders VT and BAE within a few months, it has emerged.

Talks between the two companies about merging their shipbuilding interests have been ongoing since last year, but the Government is keen to speed up the process.

Defence Minister Lord Drayson said he wants to see the deal done by the spring.

As previously reported by the Daily Echo, the Government is pushing to create a single national champion for warship-building.

Such a company would see VT's high-tech Portsmouth yard and BAE Systems' Scotstoun and Govan shipyards on the Clyde, in Scotland, operating together as one firm.

VT would be likely to produce smaller vessels in Portsmouth, while the Clyde yards would focus on bigger ships such as two frigates BAE is aiming to secure in a £700m contract to build for the Malaysian government later this year.

The new firm would go in search of more international warship-building business.

Vic Emery, BAE managing director, has said: "We will speak with one voice and have more political support and a better range of products."

Both firms are major regional employers, and any shake-up of the county's centuries-old shipbuilding industry could have major implications for hundreds of workers.

The structure of the combined company is unclear, but shipbuilding under the historic VT name could come to an end.

Instead, the Hedge End-based firm, which moved from Southampton more than two years ago, would be free to focus on its lucrative support services contracts.

VT and Farnborough-based BAE already have a close working relationships and jointly produce ships such as HMS Dauntless, which was launched this week.

VT produces bow sections, funnels and masts for each of the six ordered Type 45 destroyers in Portsmouth, which are then floated up the coast to Scotland to be assembled on the Clyde by BAE.

The pair are also members of the consortium set up to build two aircraft carriers for the Royal Navy.

They are expected to cost more than £4 billion and could offer job security for thousands of workers in both firms.