Britain is expected to decide on Thursday that it remains committed to the Eurofighter defence contract, though it wants to trim some costs related to the multi-billion dollar programme, government sources say.

Talks involving Business Secretary Peter Mandelson and officials from the Ministry of Defence, the Treasury and the prime minister's office have concluded that cancelling the contract would have too much of an impact on jobs and Britain's reputation, as well as incurring fines of up to $1.5 billion (992.5 million pounds).

The MoD said that at peak production, the Typhoon programme will help sustain 5,000 jobs atBAE Systems, 4,000 throughout aero-engine maker Rolls Royce and its supply chain and up to 16,000 in total in the UK aerospace industry.

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