The U.S. Defense Department said the aircraft are valued at $1.6 billion, part of a deal by Egypt to seek up to $3.2 billion in advanced weapons, including base construction, support equipment and other hardware and services.

The U.S. Defense Security Cooperation Agency said the first batch of the new jet fighters, known as block 50/52, is expected to be delivered to Egypt by early 2012.

This month the U.S. defense agency said the proposed sale would "contribute to the foreign police and national security objectives of the United States by helping to improve the security of a friendly country which has been and continues to be an important force for political stability and economic progress in the Middle East."

Paul Ebner, the agency's spokesman, said the U.S.- Egyptian deal was signed Dec. 23 and covered strictly the F-16s, associated equipment and logistical support.

Lockheed Aeronautics' vice president for business development, George Standridge, was quoted by local media as saying that Lockheed was now awaiting a U.S. government contract after the bilateral deal that was signed to boost Egypt's existing F-16 fleet.

The Egyptian air force ranks as the fourth-largest operator of F-16s planes in the world. It has been flying the F-16 since 1982, years after receiving military supplies and equipment for the former Soviet Union.

Egypt's arms request follows similar bids from Kuwait, Saudi Arabia and the United Arab Emirates. Saudi Arabia, for example, has revealed its intent to buy wire-guided radio frequency missiles was aimed at supporting the kingdom's efforts to modernize its national guard.

Most recently, however, Morocco awarded Lockheed Martin an $841.8 million contract to continue building 24 new F-16C/D Block 52 fighters. The deal makes Morocco, the 25th nation to buy the F-16, the world's most popular combat aircraft.

In October the administration of U.S. President Barack Obama told Congress that the F-16 sale would greatly enhance Egypt's "interoperability" with U.S. forces.

"This would make it a more valuable partner in the Middle East as well as support Egypt's own self-defense needs," the U.S. defense and security cooperation agency told Congress.

Relations between Washington and Cairo have improved significantly under the Obama administration.

Four months ago Egyptian President Hosni Mubarak flew to the U.S. capital for his first summit with a U.S. president in five years.

Even before that summit, Obama chose to visit Cairo, the Egyptian capital, to appeal to the Muslim world, pledging a "new beginning" for the United States and its relations with Islam.

Egypt receives about $1.5 billion in annual aid from the United States.

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