LONDON - The United Kingdom, Germany, Italy and Spain, the four partner nations in the Eurofighter project, Wednesday agreed to upgrade the Typhoon combat jets by equipping it with an advanced electronic radar system in an endeavor to boost its sales.

The decision to push ahead with the 1 billion euros ($1.25 billion) upgrade project was finalized by the defence ministers from the UK, Germany, Italy and Spain at a meeting in Edinburgh, Scotland, on Wednesday.

The 1 billion euro contract for the development of a world-leading electronic radar system for the Eurofighter Typhoon was signed Wednesday between Eurofighter Jadgflugzeug GmbH and the NATO Eurofighter and Tornado Management Agency (NETMA).

The upgrade project "will enable the integration of Captor E-Scan, the world's most advanced Active Electronically Scanned Array Radar System (AESA) onto the Eurofighter Typhoon," the Eurofighter said in a statement.

The fighter's large nose aperture, combined with the ability to move the antenna, will give the Eurofighter Typhoon greater 'vision' than its competitors, delivering better operational performance to the aircraft and to its weapon system.

"The signing of this contract is a massive boost to all of us and is a pivotal moment. It enhances a weapons system that offers a mix of capabilities that is simply unmatched anywhere in the world. It's something that Europe should be immensely proud of," stated Alberto Gutierrez, the CEO of Eurofighter.

The Eurofighter consortium which includes London-based BAE Systems Plc (BA/), Italy's Finmeccanica SpA (FNC) and the German and Spanish warplane capabilities of Airbus Group NV (AIR) along with its primary supplier, Euroradar, and a range of other suppliers across Europe, will all contribute to the integration programme helping further sustain high technology jobs across the four nations.

Air Vice-Marshal Graham Farnell, who signed the contract on behalf of the Partner Nations, said: "The Eurofighter Typhoon lies at the heart of NATO airpower and will continue to do so for many decades to come. This new capability will ensure the fighter remains a vital component in the mix."

Both Eurofighter and Euroradar have confirmed that the radar has significant growth potential and existing and new customers will be able to participate in tailoring the radar to meet their individual operational requirements.

Dow Jones Newswire reported that the European companies are eager to upgrade the Typhoon after the fighter lost out to others in a series of international competition for export orders including from Japan, South Korea, and India. Typhoon production is at risk of finishing before the end of the decade unless foreign orders can be secured.

According to Eurofighter, Captor E-Scan radar capability will further improve the Typhoon's combat effectiveness and allow it to maintain its superiority over other available combat aircraft.

The new development will allow the radar to fit both Tranche 2 and Tranche 3 aircraft offering customers the freedom to retrofit their existing Eurofighter Typhoon aircraft when required.

Chairman of Euroradar Andrew Cowdery said: "We have already been working closely with Eurofighter and the Eurofighter partner companies on this milestone development and we are delighted that the future of this key capability has now been secured. Captor E-Scan radar builds on the best know-how, industrial expertise and collaboration among leading European defence electronics companies".

The new programme is expected to secure more than 100,000 jobs in 400 companies. Since delivery of the first Eurofighter Typhoon to the Royal Air Force in the United Kingdom at the end of 2003, a total of 420 aircraft have been delivered to six nations and over 268,000 flying hours have been achieved.