"There are no secret negotiations between the two countries on the deal to sell the Typhoon planes," a defence ministry spokesman was quoted as saying by the state news agency SPA.

"But the British side has openly expressed a desire to supply Saudi Arabia with these planes, like any of the many friendly countries which produce sophisticated weapons systems," he said.

The spokesman said "the Saudi government did not ask for or receive any official or unofficial offer from the British side on this subject."

"Saudi Arabia has the right to defend its territory by developing its weapons systems or acquiring new systems from any country in the world."

Saudi Arabia's arms purchases were driven by "operational needs, and not against any political deals with these countries."

On September 27, the British newspaper The Guardian reported that Britain has been in secret discussions with Saudi Arabia over an arms deal worth up to 40 billion pounds (71 billion dollars, 59 billion euros).

It said British Defence Minister John Reid sought to persuade Saudi Crown Prince Sultan to re-equip his air force with a European fighter plane called the Typhoon, which is largely manufactured by British defence and aerospace giant BAE Systems.

The Guardian quoted anonymous defence, diplomatic and legal sources as saying: "Negotiations are stalling because the Saudis are demanding three favours."

Riyadh allegedly demanded that Britain expels two anti-Saudi dissidents, resumes British Airways flights to Riyadh and drops a corruption investigation implicating the Saudi ruling family and BAE.

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