Japan plans to select the Lockheed Martin [LMT]-built F-35 Lightning II as its next generation fighter jet, the Japanese news agency Kyodo reported yesterday, citing government sources.

The Yomiuri newspaper reported online the announcement could come as early as Friday, after a Security Council meeting led by Prime Minister Yoshihiko Noda.

Japan had been expected to announce the winner to produce 40 to 50 fighter jets to replace its aging fleet of F-4s. The other competitors are Boeing’s [BA] F/A-18 Super Hornet and the Eurofighter Typhoon. Japan’s Defense Ministry would be looking for the first four airplanes to arrive some time in 2016.

Kyodo quoted Japanese Defense Minister Yasuo Ichikawa as saying at a news conference that the government is in the ”final stages” of choosing the winner, but he did not confirm the media reports.

Some observers believe winning the Japan Self-Defense forces competition could open the door for potential sales to other seeking to recapitalize fighter jet fleets, including South Korea. Added production with the Japanese could help keep unit costs down and make them more appealing to other nations.

The F-35 Joint Strike Fighter has been developed by the United States and United Kingdom, along with tier two and three developing partners Italy, Netherlands, Turkey, Canada, Australia, Denmark and Norway.

The fifth generation multi-role fighter program has been plagued with cost overruns and delays, and some members of the U.S. Congress have called for its cancellation as the country tries the work through declining budgets.

The Pentagon has awarded Lockheed Martin a contract for the fifth low-rate initial production (LRIP 5) and the two sides are said to be putting the final touches on it. LRIP 5 is for 30 planes for the U.S. Air Force, Navy and Marine Corps.