Brazil has revealed plans to invest nearly $5bn in the Gripen NG project, which has already secured BRL1.5bn ($413.2m) as part of the 2017 budget.
The project includes the procurement of 36 Gripen NG fighter aircraft to equip the Brazilian Air Force.
Delivery of the aircraft will begin in 2019 and will continue throughout 2024.
Brazilian Defense Minister Raul Jungmann said: "The resources are guaranteed for the project to follow its schedule, which is going very well.
"The understanding of the Brazilian Air Force was that the best project for Brazil, for the defence of Brazil, was the Gripen.
"Today, we can prove that, in fact we have taken the best option.”
Saab and Embraer Defense & Security have recently inaugurated the Gripen Design and Development Network (GDDN) in Brazil.
The GDDN is the first in the 60 offset industrial, technological or commercial compensation projects valued at $9bn.
Development, testing and verification projects, as well as the storage of support systems for the Gripen NG, will be carried out at GDDN.
Early next year, the GDDN is anticipated to receive half of the total of 300 engineers and technicians planned for when it is in full operation.
Brazil will send 350 engineers to Sweden by 2024.
Additionally, the air force's multi-mission aircraft, KC-390, is currently in the flight test phase.
Image: Replica of Brazilian version of Gripen NG cockpit. Photo: courtesy of Brazilian Ministry of Defense.