Czech Republic-based Aero Vodochody and Israel Aerospace Industries are to develop and market an advanced version of the former's L-159 trainer and light attack aircraft.
The partners will integrate a new avionics suite and "other solutions" onto the platform, as well as jointly marketing the Honeywell F124-GA-100-powered type.
With the L-159 already used for training and aggressor missions, the cockpit update is designed to "enhance its position in the light attack market", state the pair.
Giuseppe Giordo, Aero Vodochody chief executive, says: "Together with IAI, Aero will be ready to offer aircraft with the best available technology.
"The agreement brings us together with a strong international partner with access to new potential customers."
Giordo had in February indicated that Aero Vodochody was pursuing an international marketing agreement for the L-159 with a "big aeronautical company".
The L-159 already features several systems from IAI companies, including an Elta radar and optional datalink.
Flight Fleets Analyzer records a total of 45 examples in service. Operators include the Czech Republic and Iraqi air forces, as well as US-based "Red Air" providers Draken International and Lewis Fighter Fleet.
In addition, the parties will also enhance the L-39 Albatross trainer's overall system with the use of IAI's virtual training solutions.