Spanish Defence Minister Jose Bono made the announcement after brief talks with British counterpart Geoff Hoon, Germany's Peter Struck and Italy's Antonio Martino, explaining that the cash would be used to upgrade the existing model.

The Spanish ministry added that efforts were in the pipeline to sell the aircraft to other states, including around 20 to Austria.

"Advanced" talks were under way for sales to Greece, Singapore, Switzerland and Turkey.

The four partner countries have thus far agreed to buy 620 of the planes, with an option for 90 more, and the first jets have already been delivered.

However, in late 2003, five planes which were to become part of Britain's Royal Air Force were temporarily grounded because of technical glitches, the RAF revealed at the time, citing electrical landing gear problems.

In the wake of that setback, the aircraft, which cost 81 million euros each, were slammed as outdated Cold War relics.

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