Daewoo Shipbuilding and Marine Engineering said it had submitted a preliminary proposal to Brazil, which plans to buy 11 warships in the form of a government-to-government project.

"We are in talks with government officials about the contract in Brazil," a Daewoo spokesman told AFP.

The South's defence ministry said it would consider sending a special envoy to Brazil.

The project is expected to be firmed up after president-elect Dilma Rousseff takes office in early January, the Daewoo spokesman said, adding his company expects competition from Italy, France or other European countries.

The contract, which reportedly is worth as much as four trillion won (3.5 billion dollars), includes destroyers.

South Korea has built its own destroyers and in 2007 launched its first Aegis destroyer equipped with advanced air and sea weaponry.

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