Israel's defence ministry is expected to issue a request for information for a new fleet of advanced jet trainers in June.
Officials from Alenia Aermacchi and Korea Aerospace Industries have recently visited the country and met Israeli air force, defence ministry and industry representatives.
Meanwhile, Israel Aerospace Industries and Elbit Systems are in advanced negotiations over a proposed joint venture that would see the companies buy the selected aircraft and sell flight hours to the air force.
Israel's air force is considering the Alenia Aermacchi M-346 and KAI T-50 as potential replacements for the Douglas A-4 Skyhawks used at its flight academy.
IAI and Elbit are also talking to the potential suppliers ahead of a selection. Sources say their joint venture may also include assembly of the selected trainer in Israel, in addition to the installation of locally made avionics equipment.