"We pledge to inject new energy into our bilateral relations in the areas of military and technical cooperation," General Yuri Baluyevsky told Algeria's General Salah Gaid, according to Russian news agencies.

In addition to the 1.5-billion-dollar purchase of 50 Russian MiG 29 aircraft, currently under negotiation, the two countries could shortly sign arms contracts worth some 500 million dollars, Interfax news agency said, quoting a defence ministry source.

The source said oil-rich Algeria, which currently accounts for 3.0 percent of Russian arms exports, was considering the acquisition of fighter jets, ships and ground weapons.

Gaid, a Russian speaker who was educated in the then-Soviet Union, was hosted by the management of Rosoboronexport -- the company that oversees most of Russia's arms exports -- as well as business leaders from the armament sector.

Algeria, which has strong ties with the former Soviet Union, continued to purchase arms from Russia after the fall of communism in 1991.

Recent contracts between the two countries covered the sale of 22 Su-24 Fencer aircraft, Kh-35 anti-ship cruise missiles, transport helicopters and maintenance services for coastguard ships, according to Interfax.