Brazil's Defense Ministry late Tuesday issued a statement saying it still has not chosen between French, U.S. and Swedish options for its new fighter jet force.

The Defense Ministry's release contradicts Foreign Affairs Minister Celso Amorim, who said Monday that Brazil had opted for the French Rafale jet and was in negotiations with Dassault Aviation SA (AM.FR) to buy 36 of the aircraft.

"The selection process for the FX-2 (fighter) project, conducted by air force high command, has not been completed and negotiations continue with three participants," said the statement signed by Defense Minister Nelson Jobim.

The government appears to be backtracking as, apart from Amorim's comments, the French and Brazilian government issued a joint statement Sunday that indicated Brazil was negotiating exclusively with Dassault.

Dassault is competing with Boeing Co. (BA) and Saab (SAAB-B.SK) of Sweden for the contract, which could be worth up to $10 billion.

According to the Defense Ministry, during an official visit led by French President Nicolas Sarkozy, the French government committed to offering the Rafale jets to Brazil at competitive prices comparable to those paid by the French armed forces. The French government also expressed interest in purchasing KC-390 military cargo jets from Brazilian planemaker Embraer (ERJ), the statement added.

-By Alastair Stewart; Dow Jones Newswires; 5511 2847-4520; alastair.stewart@dowjones.com