President Dilma Rousseff and her top advisers believe that Dassault Aviation’s bid to sell at least 36 Rafales offers the best terms among the three finalists, the sources told Reuters on condition of anonymity.

The other two bidders in the competition are US-based Boeing with its F-18 Super Hornet and Sweden’s Saab with its Gripen.

Rousseff has cast the deal as a watershed decision that will help mold Brazil's military and strategic alliances for the next few decades as it establishes itself as a leading economic power. The contract will have an initial value of about $4 billion, but will likely be worth considerably more over time once maintenance and follow-on orders are included.

Rousseff previously had concerns about the Rafale because the jet had not found any buyers outside France. That raised doubts about whether Dassault would have the scale necessary to build the jets at a reasonable cost and maintain them over time.