British defence group BAE Systems says it has agreed to price terms with Saudi Arabia over the sale of 72 Eurofighter Typhoon jets.

Governments from both countries had been in negotiations on how much price escalation needed to be factored in, given that an initial understanding was signed in 2005. In 2007, Saudi Arabia ordered 72 Eurofighters for £4.5bn, but the contract faced obstacles over rising costs.

Full details of the new agreement were not disclosed.

“This is an equitable outcome for all parties, I am pleased that we have been able to conclude this negotiation, which builds on our long-standing relationship with this much-valued customer,” said Ian King, CEO of BAE Systems.

BAE said the terms of the agreement were broadly consistent with the company’s prior trading outlook for 2013. Cash settlement is expected to follow the pricing agreement, commencing in the early part of 2014.

BAE builds the fighter jet with European aerospace group Airbus and Italian defence contractor Finmeccanica.