The state-funded Central News Agency quoted a military source as saying that the United States has agreed to ship AIM-120 medium-range air-to-air missiles to the Taiwanese air force to ensure military balance in the Taiwan Strait.

"If everything goes smoothly, the missiles should be shipped to Taiwan by the next two months," it quoting the source as saying, adding that the air force will also take delivery of related fire-control software to be installed on F-16 fighter jets.

The air force is planning a live-fire test of the sophisticated missile next year -- the first of such tests outside the United States, it said.

The air force declined to comment on the report.

Taiwan bought 120 AIM-120 medium-range missiles from the United States in 2000 under the proviso that they would only be delivered if China acquired similar weaponry.

Major General Peng Chin-ming, head of Taiwan's air force operations bureau, in July last year confirmed a Washington Times report that China had test-fired Russian-made AA-12 air-to-air missiles.

He said the Chinese tests would prompt Washington to deliver the AIM-120s to Taipei.

The US-built missile, which has a range of 50 kilometres (31 miles) and is equipped with advanced guidance systems, would be used to arm part of Taiwan's fleet of 150 F-16 fighter jets, Peng said.

The United States remains the leading arms supplier to Taiwan despite shifting its political recognition from Taipei to Beijing in 1979.

China has repeatedly protested to the United States over its policy of selling weapons to Taiwan, which Beijing considers part of its territory to be reunified by force if necessary.

US President George W. Bush infuriated Beijing last year by announcing the most comprehensive arms package for Taiwan in almost a decade, including four Kidd-class destroyers, eight diesel-electric submarines and 12 P-3C submarine-hunting aircraft.

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