The agreement allows the possibility of subscribers being able to receive navigation information and live traffic reports through mobile phone units.

The information will come from the Motorola server via the phone into a telematics device fitted into the car.

The mobile phone connection would then be closed down and the speech-based routing details would be delivered one by one through speakers.

This method of combining the latest server based off-board navigation routing and real time traffic information delivers more enhanced content than on-board systems at a lower price, said Bernhard Steiner, a director of Motorola European Telematics Solutions in a press release.

Trafficmaster’s shares in morning trade were up 5.3% or 16p at 318-1/4p, desceding from an earlier high of 325p.