An agreement was finalized between Iran's state owned Industrial Development Renovation Organization (IDRO) and France's Renault auto manufacturer in Paris on Monday, IRNA reported.

Deputy Minister of Mines and Industries and Managing Director of IDRO Reza Visseh signed the contract on behalf of the Iranian side, and the Managing Director of Renault Louis Schweitzer.

The Iranian auto manufacturers are aiming at producing between 700,000 and one million cars annually.

The preliminary talks on manufacturing one of the latest version of Renault were held in Paris in the winter of 2002, following which Visseh and Schweitzer signed the draft of a contract in Tehran.

The particular feature of the newly signed Iranian-French contract is that the automobile in question will be truly the fruit of joint efforts of the two countries' technical cooperation.

The managing director of Renault hoped that the new version of Renault would be introduced to the Iranian market in mid 2006.

Visseh, too, said during the ceremony held on the occasion of the signing of the contract, "Last year Renault offered the best proposal to us, based on which the Iranian and French technicians started a series of technical consultations, the result of which is signing this contract today."

Renault L90 will be manufactured in Iran based on the contract in question, which will replace the production of older versions in Saipa's production lines.

Visseh considered the finalizing of the contract, which he said will be a turning point in Iran's car manufacturing industry, the result of efforts made by IRDO, Renault, Saipa, and Iran Khordow.