“I see no reason why we shouldn’t be able to do that.”

Analysts estimate the sale, which Reuters last week reported was close, could be worth up to $2 billion.

Malaysia is considering buying up to 36 Typhoon jets as well, said Garwood.

The British weapons maker is also battling it out with U.S. rival Lockheed Martin for a $10 billion contract to provide a fleet of new training jets to the U.S. air force.

If successful, BAE, which is working on its bid with American firms Northrop Grumman and L-3, could provide the United States with 350 of its Hawk training jets. A decision over the T-X programme, as it is known, is expected by 2014.

“The funding is there for this apparently ... We’re in for it and we are confident that the system can yield very high pilot output for the United States,” said Garwood.

BAE, battling shrinking European and American defence budgets, has been forced to cut thousands of jobs at home and abroad due to public spending cuts in recent months.