Based on the next generation of the L200, Mitsubishi and Fiat have signed a memorandum of understanding where the Japanese car maker will build a mid-sized pickup for Fiat.

Reports say that Mitsubishi Motors will produce a new pickup for Fiat from 2016 in a deal to boost the Italian carmaker's commercial vehicle sales and raise output at the Japanese company's plant in Thailand.

Mitsubishi's L200 pickup competes around the world against models such as Toyota's Hilux, Nissan's Navara and similar-sized pickups such as the Ford Ranger, Isuzu D-Max, Mazda BT50 and Volkswagen Amarok.

In early 2016, it will start producing a Fiat-dedicated line of the L200, which will be rebadged and sold under the Fiat brand, said Mitsubishi spokesman Tetsuji Inoue.

"This is beneficial for both companies because Mitsubishi Motors will boost production and Fiat will strengthen its product lineup," Inoue said.

Mitsubishi is expected to supply Fiat with 150,000-170,000 trucks over six years, although the figures have yet to be finalised, Inoue said, adding that the two companies were not considering any further cooperation.