State-run Israel Aircraft Industries on Wednesday signed an international marketing agreement for a light helicopter made by India's Hindustan Aeronautics Ltd.

HAL Chairman Nalini Mohanty said IAI would supply the avionics equipment for international sales of the helicopter and IAI may supply the avionics for the helicopter to be made for the Indian army.

"We chose IAI because it has two major strengths. IAI's avionics are world class and because they are good in the international market, an area where we are week," Mohanty told reporters.

The firms declined to disclose the value of the deal.

Shimon Eckhous, vice president of business development at IAI, said the helicopter may be sold in South America and other regions.

Mohanty declined to comment on broader military relations between the two countries.

IAI, a defence contractor that is prime contractor for the Arrow anti-ballistic missile system, is Israel's largest exporter.