Malaysia is seeking more than $251 million (€216 million) in compensation from a Norwegian company over a scrapped deal to supply a missile system for new warships, the defence minister said on Tuesday.

Mohamed Khaled Nordin said the government had sent a notice to Kongsberg Defence & Aerospace demanding compensation for both "direct and indirect costs" over Norway's decision to revoke export approvals for the missile system, sparking a diplomatic row.

Oslo's foreign ministry has confirmed "that certain licences related to the export of specific defence technology to Malaysia have been revoked."

This was "solely due to Norway's application of the export control regulations and it is regrettable that this affects Malaysia," the ministry said, adding that it could not comment on individual contracts.

The move had blocked delivery of the Naval Strike Missile system as well as launcher components that had been destined for Malaysia's littoral combat ship programme under the terms of a 2018 deal.