Phase four of the co-operation has seen a joint investment of €332m (£225.3m) for the development of two new engines.
Ford Motor Company will produce a 2.2-litre commercial diesel engine for the Transit and for Peugeot Citroen's upper range LCVs (Boxer and Relay), from its Dagenham engine plant in Essex, at the rate of up to 200,000 units per year.
PSA Peugeot Citroen will produce a 2.2-litre premium, diesel engine for both companies' medium/large and executive models at the rate of up to 200,000 units per year at its Trémery plant in Moselle, France, the world's largest diesel engine facility.
Ford Motor Company now uses engines produced through the collaboration in its Ford, Mazda, Volvo, Jaguar and Land Rover brands, while PSA uses them in its Peugeot and Citroen products.
The programme was launched initially in 1998. Since then, more than four million diesel engines have been produced.
The PSA engines will be ready early next year and the Ford engines later.