IBM has signed a deal with Honda to make a talking car.

The deal, which will bring the 1980s television show Knightrider a step closer to reality, will use IBM's ViaVoice voice recognition software.

The system will be used on Honda's 2003 Accord, which will go on sale in September.

Each car will have a navigation system that is integrated with voice recognition software and a small touchscreen.

The voice recognition system works by touching a button on the steering wheel and then speaking aloud. The software will then respond, using the car's audio system to give driving directions.

An IBM spokesman said that the system would use a dialogue of words rather than just listening for a few keywords, as the previous generation of voice-activated computers had.

So the system will be able to understand commands such as "find the nearest petrol station", or the "find the nearest Indian take-away".