New Delhi, July 7 -- Canada on Monday named Germany's ThyssenKrupp Marine Systems as the preferred supplier for up to 12 submarines in what Prime Minister Mark Carney called the country's largest-ever military procurement.

The decision came before Carney headed to this week's NATO summit, where allies face pressure to back higher defense spending with concrete plans.

Carney said the procurement will be "the largest in Canadian history" and that the TKMS platform is optimal for Arctic waters and for NATO.

"The submarine is proven and capable," Carney said, noting TKMS supply submarines to more than one-third of NATO members.

Carney named TKMS the preferred supplier and said negotiations would begin on a final contract. He declined to d...