French President Emmanuel Macron accuses Australian Prime Minister Scott Morrison of lying about submarine contract.

Extract from The Guardian

By political editor Andrew Probyn and political reporter Matthew Doran

Posted 7 minutes ago

French President Emmanuel Macron has told the ABC the handling of the AUKUS deal was "detrimental to the reputation of your country and your Prime Minister".(AAP: Mick Tsikas)

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French President Emmanuel Macron has accused Scott Morrison of lying about the $90 billion submarine contract that was cancelled six weeks ago.

Mr Macron made the extraordinary accusation after being approached by the ABC on the sidelines of the G20 summit in Rome.

The tension between the two leaders is palpable after the massive deal was torn up, with Australia announcing its new defence and security pact with the United States and the United Kingdom along with a commitment to acquire nuclear-powered submarines.

The French President was asked whether he thought Mr Morrison had lied to him about Australia's intentions.

"I don't think, I know," he replied.

"The AUKUS deal was very bad news for France — but not just for France, because I think it's a very bad news for credibility of Australia, and a very bad news for the trust that great partners can have with the Australians.

"I think this is detrimental to the reputation of your country and your Prime Minister."

More to come.