India is expected to sign a Mirage 2000 fighter upgrade deal, worth $2.2bn, with France by the end of 2010.

The Mirage upgrade deal has been lying unresolved for the past two years over price differences between Dassault and Thales, according to Indian Express.

The upgrade on all 51 Mirage 2000s will provide the Indian Air Force’s fleet with new radar systems, weapon suites, missiles and electronic warfare systems, and extend their service life.

Air Chief Marshal PV Naik said a team would shortly be arriving from Paris to carry out the commercial negotiations.

Initially France quoted nearly $3bn for the upgrade, after going through the IAF’s requirements, which included new radars for the fighter.

The IAF disputed this price, since it amounted to $58m for each aircraft, almost the price of a brand new fighter jet.

Later, when France revised the deal, the cost per aircraft came down to $43m.

The upgrade deal is expected to be signed after President Nicolas Sarkozy’s visit to India later this year.