For months Defence has studied offerings from South Korea's Hanwha Ocean and Hyundai Heavy Industries (HHI), Japan's Mitsubishi Heavy Industries (MHI), Spanish shipbuilder Navantia and Germany's ThyssenKrupp Marine Systems (TKMS).
On Thursday evening multiple sources told the ABC that cabinet's National Security Committee (NSC) had this week chosen Japan's upgraded Mogami 30FFM and Germany's MEKO A-200 as the final two designs ahead of a final selection next year.
Germany's MEKO A-200 is a modern version of the navy's Anzac frigate and has a modular design that can easily accommodate Australian requirements and is likely to be considerably cheaper than Japan’s initial proposed price. The latest version of Mogami frigate is widely considered one of the world's leading warship designs, and although Japan is growing strategically more important for the Australian military, the nation has minimal naval export experience.
Earlier this year Chief of Navy Vice-Admiral Mark Hammond praised Japan's shipbuilding capacity, but many others in the service favour sticking with German-built vessels, which Australia is already more familiar with.
