Fincantieri, the Italian shipbuilder, has signed a €500 million (£347 million) deal to build a passenger liner for Cunard, to be named the Queen Elizabeth.

The 92,000-tonne liner, the second-largest in Cunard’s history after the Queen Mary 2, will be built at Fincantieri’s Monfalcone shipyard and go into service in 2010.

Fincantieri is also completing the Queen Victoria, a 90,000-tonne passenger liner, for Cunard at its Marghera shipyard in Venice.

Fincantieri said that the deal brought the number of ships on order at its shipyards to 16, giving it a market share of 40 per cent.

The Queen Victoria will be launched in December by the Prince of Wales and the Duchess of Cornwall.

It will carry 2,000 passengers, the Queen Elizabeth 2,092.

Carol Marlow, the president of Cunard Line, said: “Cunard already owns and operates the two most famous ocean liners in the world, Queen Elizabeth 2 and Queen Mary 2.

"Cunard will once again become a three-ship fleet so soon after the departure of the Queen Elizabeth 2 in November next year.”

The Queen Elizabeth will be based at Southampton and fly the Red Ensign, as is the case with other Cunard liners.

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