BRASILIA: French President Nicolas Sarkozy arrived in Brazil late Sunday for a two-day state visit as Latin America's biggest nation mulled a four-billion-dollar purchase of French fighter jets.

Sarkozy is to be Brazilian President Luiz Inacio Lula da Silva's guest of honor at the country's Independence Day parade in Brasilia on Monday a symbolic but significant sign of the close military relations being forged between their two countries.

Lula is to announce in the next few weeks the winner of a fiercely contested tender to supply Brazil with 36 modern war jets that will be the spearpoint of the country's air force for the next three decades.

France's Rafale, built by Dassault, is seen leading the race over the US F/A-18 Super Hornet and Sweden's Saab-built Gripen NG.

Lula confirmed in an interview with AFP ahead of Sarkozy's visit that Dassault's offer had an "exceptional comparative advantage" because of France's guarantee to share all military technology with Brazil as part of the deal.

The president affirmed in a subsequent interview with RFI radio and TV5Monde that talks with France over the Rafale's were at "a very advanced stages and I think that we will reach a good understanding with France."

Brazil already last December struck deals to buy five French submarines -- including one that will be modified to run on nuclear power -- and 50 military transport helicopters, for a total value of around 10 billion dollars.

Sarkozy and Lula are to sign the final confirmation of those two major purchases, both of which also involve transfer of technology.

Brazil's costly overhaul of its military is aimed at protecting its natural resources: the Amazon, and especially new offshore oil fields that have the potential to turn the country into one of the top 10 oil producers in the world.

The acquisition of military secrets is a key part of the strategy of Brazil, which, in Lula's words, is poised to become "one of the great powers of the 21st century." It intends to use the knowhow to develop its own defense industry.

"The relationship between Brazil and France is not one of supplier and client, but of partners," Sarkozy told Sunday's edition of Brazil's O Globo newspaper.

"We want to act together because we share the same values and a same vision on the big international goals," he said.

Despite the obvious rapprochement between the two countries, an announcement on Brazil's fighter jet decision was not expected during Sarkozy's stay.

Officials and those involved in the three bids said the winner would most likely be declared in late October, after an extremely detailed Brazilian air force evaluation of the three bids was digested.

That may, however, leave France some space to develop civilian commercial deals with Brazil -- an area in which it has been relatively weak to date.

Chief among those is another multi-billion-dollar tender to build a high-speed rail link between Brazil's biggest cities of Rio de Janeiro and Sao Paulo.

Among Sarkozy's business entourage on his visit are the heads of some of France's largest companies, including EADS, Alstom, GDF Suez and, of course, Dassault.

The French president was met upon his arrival by Lula, and the two went to the Brazilian leader's official residence for talks over dinner.

On Monday, Sarkozy will view Brazil's Independence Day parade, returning an honor he extended to Lula, who attended France's Bastille Day celebrations in July this year.

The two will give a joint media conference after another meeting.