Long-time Russian ally Algeria sent back 15 MiG-29s for containing sub-standard parts and has now begun talks on replacing them with up to 16 SU-30s, the source at Russian arms dealer Rosoboronexport told Interfax news agency.

"The order to supply Algeria with SU-30s was received at the end of April," the source said. "Algeria wants 14 to 16 SU-30MKIs to replace the 15 MIG-29SMTs."

The source stressed that the negotiation process was "at the earliest possible stage", adding that Algeria has already received six SU-30s out of a previous order of 28.

Russia designed the SU-30 in the late 1990s and has exported the sleek, agile combat aircraft to its allies around the world, including to China, India and Indonesia.

Russia has placed increasing emphasis on its weapons industry as it tries to reassert itself after the chaotic post-Soviet 1990s. It is the number two producer behind the United States in a global arms industry which earned around $28 billion in 2006, according to a report last year.