Slovenia has halted the procurement of EADS Casa C-295 tactical transports following the 23 January fatal crash of a Polish air force aircraft.
Although the cause of the crash is not known, the MoD gives the accident in Poland as its reason for halting the procurement, saying safety is of the "highes importance" when equipping for the Slovenia armed forces.
All 16 passengers and crew were killed when the C-295 crashed into a forest 1.7km (1nm) short of the runway at Miroslawiec air base. The pilot had previously performed a go-around because of poor visibility.
The Solvenian MoD says both bidders have been informed of the decision to stop the procurement. The C-295 had been selected over the C-27J because EADS Casa "submitted a more acceptable offer", it adds.
The MoD says it will re-examine its 2007-12 mid-term programme to re-equip the armed forces.