French Foreign Minister Laurent Fabius said on Sunday that talks with India to finalize the purchase of French Rafale war planes were looking up.
India chose Dassault Aviation's Rafale for exclusive negotiations over a year ago to supply 126 aircraft in a deal potentially worth $10 billion.
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However, both sides have played down prospects that the deal would be finalized when President Francois Hollande visits India on February 14-15.
"Things seem - I'm very cautious - to be looking very positive. That's at least what the Indians say," Fabius said in an interview on BFMTV.
He added that recent talks with his Indian counterpart and subsequent contacts had gone in the right direction.
Indian Defense Minister A.K. Antony pledged on Wednesday not to let defense cuts disrupt efforts to finalize the deal.
(Reporting by Leigh Thomas; Editing by Stephen Powell)