Toyota Motor Corp and Nippon Telegraph and Telephone Corp have agreed to work together on developing smart cities and will invest 200 billion yen ($1.8 billion) in each other to cement the relationship, a person briefed on the issue told Reuters on Tuesday.
Projects would initially be in Japan, the person said, declining to be identified as the plans have not been made public.
A news conference has been scheduled for later on Tuesday. The companies said an announcement would likely be made after board meetings.
Japan's biggest automaker and largest telecoms company already collaborate on developing technology for connected cars.
Toyota announced this year it would develop a prototype, hydrogen-powered city near Mt. Fuji in Japan that will incorporate smart homes, robotics as well as autonomous driving and AI technologies.
This story has been published from a wire agency feed without modifications to the text.