Harland & Wolff has failed to land a £344 million sterling (€580.29 million) contract for two cruise ships with a start-up cruise company, Luxus Holdings.

The contract has been awarded to the British shipbuilder Cammell Laird instead following months of negotiations between the two companies.

The award is conditional on a government subsidy for the shipbuilder and loan guarantees supplied by the British Department of Trade and Industry.

Harland & Wolff negotiated for the contract with Luxus following its failed bid to land the contract for the Queen Mary II earlier this year.

Last week the Belfast yard secured its future by landing a multi-million pound contract for two UK Ministry of Defence ferries.