"It involves 48 PT-91-M tanks with supplementary equipment and services, which will be provided by Poland up to 2006," defence ministry spokesman Eugeniusz Mleczak told AFP.

The contract will be signed on Poland's behalf in Kuala Lumpur by Roman Baczynski, the head of Bumar, the company which makes the tanks, and in the presence of Poland's Defence Minister Jerzy Szmajdzinski who heads to Malaysia on Thursday.

The contract will be Poland's biggest weapons deal since 1981 and Malaysia's first purchase of assault tanks, Mleczak said.

"Malaysia wants to use it to built its first armoured division," Mleczak said.

Malaysian Prime Minister Mahathir Mohamad first announced the decision to buy Polish tanks during a visit to Warsaw in March, 2002, but no details were given of the number involved.

At the time he suggested that Malaysia pay part of the cost with commodities.

Last year Poland also sold India an arms package, including tank systems and technical assistance vehicles, worth 147 million dollars and Mleczak said that Poland is also working on another "big" arms sales contract with India.

Poland's economy ministry says Poland could export between 1.5 billion and two billion dollars' worth of arms over the next two or three years.

SPACE.WIRE