The provisional deal covers the rapid production of prototypes as the Air Force phases out E-3 Sentry or AWACS airborne warning and control aircraft, and follows reports of disagreements over the price for the 737-based Wedgetail planes.
"We have reached agreement with (Boeing)... We have got a reasonable price point that we can afford," Secretary of the Air Force Frank Kendall told reporters at the Royal International Air Tattoo military air show in western England.