Brazil will postpone until 2013 its decision to buy 36 next-generation fighters for $5 billion, Agence France-Presse reported yesterday.
A government official, who asked to stay anonymous, said Friday that Brazil's budget does not include an outlay for the purchase of the jets.
The report said the Brazilian government did not have a favorite among the competing aircraft which include the Boeing F/A-18 Super Hornet and the Rafale fighter made by the French firm Dassault Aviation and Sweden's Saab Gripen.
Brazil is reportedly waiting for the U.S. presidential election results in November before it finalizes its decision.
The source said Brazilian President Dilma Rousseff may take a trip to France in December.
The report said Brazil had initially favored the Rafale, but found it too expensive.
Brazil is requiring technology transfers in all defense agreements, which Paris is willing to offer but Brazil wants a cheaper price tag.
Boeing's F/A-18 Super Hornet is the cheaper choice, but the report said Brazil is worried Washington may impose technology restrictions.