Israel Aerospace Industries (IAI) has offered four airborne early warning and control (AWACS) aircraft to Italy in exchange for the M-346 trainer jet.

The Italian government has held bilateral talks regarding the M-346 trainer, leading to IAI offering a package including the purchase of the AWACS aircraft.

Italy’s Alenia Aermacchi M-346 Master and Korea Aerospace Industries (KAI’s) T-50 supersonic trainer are currently being considered by the Israel Air Force (IAF) to replace its aging fleet of A-4 Skyhawks.

The company is expected to prepare a full package by the year-end, according to Flightglobal.

The final decision on the deal is expected at the beginning of 2012.