Under the plan, the two firms will jointly bid for a 300-million-dollar project to boost capacity by 20 percent at the 1.36-million-kilowatt Laguna Verde nuclear plant in Mexico, the Nihon Keizai Shimbun reported.

If their bid is accepted, General Electric intends to supply peripheral reactor equipment while Mitsubishi Heavy will supply steam turbines, the business daily said.

General Electric has already agreed to work with Mitsubishi's rival Hitachi on nuclear power projects amid growing interest worldwide in nuclear energy, particularly in the United States.

Mitsubishi Heavy also plans to supply General Electric with step-up gears, a key wind turbine component, as early as 2008 in a bid to lower production costs and increase its market share in the wind power industry, the daily said.