China called on France on Tuesday to cancel a weapons contract with Taiwan, warning that the deal with the self-ruled island could harm diplomatic relations between Paris and Beijing.

Taiwan's navy said last month it would upgrade the 25-year-old missile interference system of French-built Lafayette frigates, whose sale three decades ago had raised diplomatic tensions.

Taiwanese media said the deal was worth over US$26.8 million to buy the Dagaie MK2 decoy launcher from a unit of French group DCI.

"China has expressed deep concern to France," the foreign ministry in Beijing said.

"We oppose all weapons sales or military and security exchanges with the Taiwan region," it said.

"We urge France to cancel this planned weapons sale to Taiwan in order to avoid harming Sino-French relations."

France sold the six frigates to Taiwan for US$2.8 billion in 1991, causing a freeze in diplomatic relations between Paris and Beijing. (AFP)