Ministers have agreed a technology tie-up with Emmanuel Macron’s government that will see the UK unite with France in areas such as artificial intelligence and cyber security.

Matt Hancock, the Culture Secretary, will this morning announce the two countries plan to work together to pool industry and academic research. Britain and France will host a conference later this year to encourage cross-Channel investment, targeting work on AI in particular.

It comes as France’s new government tries to shake off its reputation for protectionism and onerous employment rules that has held back start-ups in the country and seen Paris lose out to London as a tech hub.

Last year more venture capital deals were signed involving French tech companies than British ones, the first time this has happened in half a decade, although the UK raises far more money in total and dominates rankings of European “unicorns”, start-ups with valuations of more than $1bn (£720m).

Although Mr Macron has made no secret of French ambitions to lure IT workers from London after Brexit, launching a new tech visa programme and using state cash to sponsor start-ups, cross-border work could help Europe challenge the giants of Silicon Valley.