Saudi Arabia has agreed in principle to acquire up to 96 Rafale combat aircraft from France's Dassault Aviation for some €6bn, Les Echos, the FT's French sister newspaper, has learnt.

The agreement forms the cornerstone of a broader defence, security and industrial accord estimated to be worth up to €20bn ($26bn, £14bn) signed during a meeting in Paris yesterday between Jacques Chirac, French president, and Crown Prince Abdullah, Saudi Arabia's de facto ruler.