In its latest edition, published here today, Jane's said the accord is thought to have been agreed within the past month and is due to be formally signed shortly.

Jane's said the deal calls for the joint research and development of a series of reconnaissance satellites, with Israel providing the technology and Singapore the funding.

For Israel, it would resolve a funding shortage that has plagued its space programme for several years, the magazine said, while also reducing dependency on the United States.

Meanwhile, it would boost Singapore's longstanding interest in developing space-based capabilities as part of a push to improve command, control, communications and intelligence, Jane's added, quoting sources in Tel Aviv, Singapore and Washington.

Israel Aircraft Industries will be prime contractors for the satellite project, it said, although the company would not comment.

Israeli defence sources told Jane's that defence ties between Israel and Singapore are already worth more than US$1 billion in outstanding deals.