The news filtered following a meeting of the Brazilian President with visiting Prime Minister Fredrik Reinfeldt from Sweden, one of the three countries that have expressed an interest in the contract.
Sweden is offering its Grippen jets fighters along with France and its Dassault Rafale and the United States F-18 Super Hornet.
The decision has been dragging since the previous administration. Under the terms of the contract the purchase of the aircraft must involve a significant technology transfer component including assembling some of the units in Brazil.
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