Athens will also sign an option to obtain 10 more aircraft of the same type for operational needs as part of a four-year arms programme extending to 2010, the minister said following a meeting of the Greek state council of foreign affairs and defence (KYSEA).

The final cost of the contract will depend on the offer tendered by the US government, Spiliotopoulos said.

The Greek defence ministry will request the provision of maintenance support for the F-16 planes as part of the offset deal, he added.

In April, the government said it would reexamine a deal sealed by its socialist predecessors for the purchase of 60 Eurofighter aircraft from European consortium EADS at an estimated cost of 1.7 billion euros.

The state council will decide at a later meeting whether to buy a further 30 fighter planes, with an option for another 10, the minister said.

The F-16/Block 52 is the latest generation of the popular fighter, which first appeared in the 1980's.

Spiliotopoulos and Greek Prime Minister Costas Karamanlis both visited the United States earlier this year, respectively in April and May. At the time, the Greek press had reported that the government was examining proposals for F-16 planes.

The minister also announced on Tuesday the approval of a contract with the German government for 333 Leopard tanks.

Originally scheduled to order 170 Leopard 2A5-class tanks from Germany's Krauss-Maffei Wegmann (KMW), the Greek government modified the deal to include 183 Leopard 2A4's and 150 Leopard 1A5's for an additional 325 million euros (392 million dollars).

The renegotiated deal is to be signed soon, a defence ministry source told

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