DHAKA: The UK and US are to carry out "war game" cyber attacks on each other as part of a new joint defence against online criminals.

The first exercise, a staged attack on the financial sector, will take place later this year, Downing Street said.

The "unprecedented" arrangement between the two countries was announced as Prime Minister David Cameron held talks with US President Barack Obama, reports BBC. 

Agents will also co-operate in "cyber cells" on both sides of the Atlantic.

Downing Street said this was the first "cyber cell" the UK had established with another country.

The measures come in the wake of recent cyber attacks on Sony Pictures and US Central Command.

BDST: 0854 HRS, JAN 16, 2015