India and France on Tuesday agreed to bolster bilateral defence ties by working on joint development of quick reaction short range surface-to-air missiles (SRSAM) and concluding a crucial deal on upgradation of IAF's frontline Mirage 2000 fighters.

Transformation of defence ties from a buyer-seller relationship to joint production and transfer of technology for making hi-tech weapon systems and platforms was highlighted in a joint statement issued after summit talks between Prime Minister Manmohan Singh and French President Nicolas Sarkozy in Paris.

Negotiations on upgradation of IAF's fleet of 52 Mirages 2000 fighters, which will enhance their life for another 25 years, are almost in final stages.

This was reflected in comments made by Sarkozy after the summit meeting where he said "discussions on the upgradation are well underway and expected to be finalised by next year".

In the proposed deal worth over 1 million euros, the French aviation major Dassult has offered to upgrade the IAF Mirages to the level of French Air Forces Mirage 2000-9.

Another major French-led European company EADS has offered an agreement to jointly produce 1,000 SRSAM for the Indian Army in collaboration with DRDO and state-owned Bharat Dynamics.

Dassult is also one of the leading contenders for the IAF's biggest ever military contract worth $10 billion for acquisition of 126 Medium Multi-role Combat Aircraft.