Brazil looks poised by the end of March to pick the winner of a multibillion-dollar tender to supply its air force with state-of-the-art combat aircraft.

The country's air force chief Gen. Juniti Saito told local media the selection would be a "political and strategic decision" made by Brazilian President Luiz Inacio Lula da Silva after a thorough technical evaluation of the three competing bids by Brazil's air force.

Since the tender was called in 2009, Dassault's fighter Rafale -- competing against Boeing's F-28 and Saab's Gripen NG -- has been seen as the most likely pick.

In fact, the Brazilian president and his French counterpart Nicolas Sarkozy said last September that talks were under way for the purchase and delivery of 36 Rafale fighters.

Since then, however, the process has been held up pending the air force's assessment report of the three contenders.

Local media, however, suggested that despite the president's preference of Dassault, the country's air force was leaning toward the much cheaper Gripen NG.

The American option is being regarded as the underdog because of U.S. refusal in the past to allow Brazil to export aircraft using U.S technology.

Earlier this week and as defense chiefs from Brazil and the United States met in Washington, Pentagon spokesman Geoff Morrell said awarding Boeing the contract would strengthen cooperation between the countries' militaries.

"We clearly believe that (Boeing's F/A-18) Super Hornet is the best plane for Brazil, not just because the plane itself is superior to the others but because of the opportunities for cooperation," Morrell said.

The Washington talks focused on the need for the United States to rebuild trust in South America, a region where skepticism lingers after decades of perceived meddling by Washington.

Even so, Brazil's president has repeatedly stated that his preference for the French jet stemmed from France's offer to give Brazil all the technology involved in the Rafale's construction -- a key point for Brazil, which wants the know-how to one day make its own modern fighters.

Early this month, the Brazilian government rejected a local newspaper report that Dassault had sliced $2 billion off its bidding price to clinch the lucrative deal.

Rafale's initial bid has been $8.2 billion for the package, well more than the Gripen offer of $4.5 billion plus $1.5 for maintenance. Boeing's bid is valued at $5.7 billion plus $1.9 billion in maintenance.

France is keen seal the deal with Brazil, making the Latin American country the first export customer of its Rafale, after losing out in several other tenders around the world.

By some accounts, the contract for the initial 36 planes could rise to more than 120.

Brazil has already signed a deal with the French for the construction of five submarines in Brazil. The deal also includes building a nuclear-powered vessel.

What's more, the multibillion-dollar deal would help offset the downturn at Dassault's jet division.