France and Egypt have agreed a deal worth more than 5 billion euros ($5.7 billion) for the sale of Dassault Aviation-built Rafale fighter jets, a naval frigate and missiles, a French source close to the matter said on Thursday.

The deal would make Egypt, which has been looking to upgrade its military hardware on fears the crisis in neighbouring Libya could spill over, the first export customer for the French warplane.

“Yes, there is an agreement,” the source said in response to a report in Le Monde newspaper which said the two countries had initialled the deal on Thursday.