"We are happy to announce that Malaysia has agreed to buy 18 Sukhoi Su-30MKM aircraft," Najib told reporters after talks with his Russian counterpart Sergei Ivanov.

He said the original Su-30MK fighters would "modified in terms of technical applications to meet Malaysia's own requirements", and hence renamed Su-30MKM. The modifications included adding "suitable weaponry," he said.

"Financial and technical talks have been held and an understanding has been achieved but there are still some formalities to be settled," he said, adding that a formal announcement would be made soon.

Ivanov said at press conference with Najib that the value of the contract was "tentatively 900 million dollars."

"I believe what matters is not the value of the contract but that it shows that Malaysia and Russia are at military cooperation in the long-term," he said.

"With the upcoming closure of the deal, this shows that Russia is ready for serious cooperation with Malaysia and will supply Malaysia with military technology and know-how."

Najib said the purchase for the Royal Malaysian Air Force formed part of Malaysia's military upgrading process.

"We recognise the need to have multi-role combat aircraft and we have decided that the Sukhoi is a suitable aircraft to fulfill our requirements," he added.

Ivanov, the first Russian defence minister to ever visit Malaysia, arrived Sunday for a three-day visit. He is due to fly on to the United States on Tuesday.

WAR.WIRE