BMW is about to announce an alliance to develop self-driving cars in alliance with Mobileye and Intel, according to a Reuters report.

The report said the tie-up is likely to focus on technology being developed by Mobileye that gives vehicles better reflexes without driver input, ushering in an era of self-driving cars early in the next decade, some analysts say.

The report also said the three companies will hold a joint news conference on Friday which will be attended by BMW Chief Executive Harald Krueger and his counterparts at the other two companies.

The move comes as automakers and technology firms are striking new alliances to develop self-driving cars, with car makers looking to protect their positions in the face of the entry of Silicon Valley firms into the automotive space.

BMW has said it plans to launch a new flagship model with autonomous driving capability in 2021. Analysts says that Intel has been recruited to provide the computing power required for the driverless car's central processor unit (CPU). Mobileye is a leader in camera-based sensor systems currently used in advanced driver assistance systems that are expected to evolve into the sub-systems in autonomous vehicles.