The 4G successor could be rolled out from 2020.
Germany and the UK are looking to develop 5G wireless technology, as part of a bilateral pact between three universities from the two countries.
Speaking at the ongoing CeBIT trade fair in Hannover, David Cameron, the UK prime minister, said the University of Dresden, King’s College University in London and the University of Surrey Uwill carry out research on the 5G network.
Cameron said: "This is a world on fast forward a world of permanent technological revolution and in this world, countries like the UK and Germany will only succeed if we have a relentless drive for new ideas and innovations."
"We want to work with you to pool ideas, share data, innovate, to lead on the next big ideas."
The 4G successor would probably be rolled out from 2020, which is supposed to offer maximum download speeds 1,000 faster than its predecessor, while providing lower latency and improved battery life.
Cameron also announced £73m in funding to advance research on the Internet of Things, and said he would fund up to £1m for firms that are looking into such new opportunities.
"This has enormous potential to change our lives," Cameron added.
"We are on the brink of a new industrial revolution and I want us, the UK and Germany, to lead it."
Cameron will also roll out a new Spectrum Strategy to hand over unused ‘white space’ digital frequencies for wide commercial use, as part of efforts to double the economic benefit generated to £100bn by 2025.