Spain’s decision would be a major setback for planemaker Lockheed Martin, as Madrid issued a non-binding request for information on the F-35 in 2017.
Spain’s 2023 budget included an initial allocation of €6.25 billion to replace navy and air force aircraft.
The Spanish navy plans to decommission its Harrier AV8B fighters by 2030 and has expressed interest in replacing them with naval version F-35B models, already purchased by the United States and Italy.
The air force also considered the F-35A model as a temporary solution to replace its McDonnell Douglas F/A-18 Hornets while awaiting the FCAS.
Madrid’s move could further heat up tensions between Spain and the United States, as Prime Minister Pedro Sánchez is a vocal critic of NATO’s new defense spending goal of 5 percent of GDP, pushed by U.S. President Donald Trump.
This article has been updated.