About $9 billion have been allocated for purchase of French military equipments.

The choppers would be built in Brazil in collaboration with the Eurocopter firm, an affiliate of the European EADS group.

Separately, Brazil would also begin negotiations for the purchase of 36 Rafale combat aircraft from the French firm Dassault Aviation, officials said. Sweden's Saab and the US' Boeing Company are also vying for the aircraft deal, which has not been finalised.

'It's only a decision to begin negotiations,' Lula said at a joint press conference with Sarkozy Monday.