(Reuters) -Austria plans to buy 12 Italian-made M-346 FA fighter jets to replace Saab 105 planes which it decommissioned at the end of 2020, the government said on Saturday.
Citing military sources, newspaper Krone said a letter of intent was due to be signed on Saturday with the Italian Defence Ministry for the planes made by Italy's Leonardo.
The contract is currently being negotiated with the Italian government, the Austrian Defence Ministry said, confirming the planned purchase of the aircraft.
Austrian Chancellor Karl Nehammer said the deal showed the strength of cooperation between Italy and Austria.
"My special thanks go to (Italian) Prime Minister Giorgia Meloni, who made a significant contribution to the conclusion of this agreement," Nehammer said in a statement.
The total cost of the purchase has yet to be determined, but about 1 billion euros ($1.04 billion) has been budgeted for it, the newspaper said.
The jets will be used for pilot training, support for ground forces and air defence, the government said.
($1 = 0.9590 euros)
(Writing by Dave Graham;Editing by Alison Williams and Helen Popper)
