"I think if the US gets as good as that with us, then what else do we need?" an elated senior government official told AFP, requesting anonymity.

"The US had not given us the F-16 jets for which we had paid money, and now that they are giving us its advanced version is something extraordinary."

The US-based Defence and Foreign Affairs journal reported that Washington would not only now release the jets, but would hand Pakistan the new Lockheed Martin version.

Pakistan paid for 28 of the aircraft in a deal first negotiated in the late 1980s. Despite having already purchased them, the US blocked their release in 1991 when Pakistan could not certify that it had no nuclear program.

Pakistan only went public as a nuclear power in May 1998 when it test-detonated several nuclear devices in response to India's tests the same month.

The blocking of the F-16s' handover has been one of the biggest strains on US-Pakistani relations over the past decade.

The Stratfor private global intelligence think-tank also reported this week that the handover of the fighter jets was nigh, in recognition of Pakistan's crucial role in the 20-month old war on terrorism.

"Those aircraft -- along with debt forgiveness and trade status -- likely will be Washington's reward for Pakistan's support in the war against al-Qaeda," it wrote in a June 17 report published on its website.

There were conflicting reports over when the release of the fighter aircraft would be announced.

The Dawn newspaper quoted unnamed sources saying Washington would wait until July or August when the joint US-Pakistan Defence Consultative group next meets.

The Defence and Foreign Affairs Journal said it would be announced during President Pervez Musharraf's visit to the United States. He is due to land there Friday ahead of June 24 talks with US President George W. Bush at Camp David.

The Pakistani official said the F-16s were not listed on the Musharraf's official agenda in the US.

"But such things can come up at any stage though not listed on official agenda," he said.

The anti-Musharraf Pakistan Muslim League-Nawaz (PML-N) party was suspicious of the reported deal.

"It seems like a trap and in exchange of F-16s US may ask Pakistan to roll back its nuclear and missile programme," PML-N spokesman Siddiqul Farooq said.

"Any deal between Musharraf and US will not be honoured by the nation because he is not a genuine president representing the people of Pakistan."

The hardline Islamic party Jamaat-i-Islami (JI), a lead party of the religious coalition Muttahida Majlis-e-Amal (MMA), was furious at reports the F-16s would be released as a war on terror reward.

"Pakistan got its debts written off by the US in exchange for the blood of thousands of Afghans. Reopening the F-16 deal will not be without a price," JI Shahid Shamsi said.

WAR.WIRE