TEL AVIV, Aug 21: Israel is close to signing a deal to sell India a strategic airborne radar system worth one billion dollars in the biggest arms deal since diplomatic ties were established 11 years ago, a defence official said on Thursday.

India had ordered three of the plane-mounted Phalcon early-warning radar systems from state-run Israel Aircraft Industries for a total of 1.2 billion to 1.3 billion dollars, the Israeli official said.

He added the contract could be ready in time for a planned visit by Israeli Prime Minister Ariel Sharon to New Delhi next month. “We are trying to close on the final details in the contract,” the official said.

The Phalcon is capable of tracking 60 enemy targets within a radius of 400kms.

Indian defence officials confirmed in May a deal was in the works to buy the Phalcons, which are similar to US Awacs early-warning radar systems and will be used to watch the border with Pakistan.

Analysts say the deepening defence relationship between India and Israel is part of a push to forge tighter links between the two countries, who both believe they are fighting militancy supported by hostile neighbours.

The United States last year persuaded Israel to suspend the Phalcon sale when Pakistan and India were on the brink of war. With rapprochement efforts restored, Washington dropped its objections in May.

Under US pressure, Israel had suspended the sale of four Phalcon aircraft to China in 2000.

Washington officials cited concern the technology could endanger Taiwan. —Reuters