Altogether, these countries are expected to purchase over 700 of the aircraft and help support the cost of the development. The program is now well behind schedule and delays are causing some of the participating countries to consider scaling back on their orders. The Dutch parliament is one key player considering a reduction in its order from 85 to 57 aircraft to reduce costs.

In an effort to secure more orders and reduce the development costs of the F-35, The U.S. has offered to add Israeli-made munitions and systems to the F-35 and deliver the aircraft to Israel by 2015. Reuters reports that Israeli built systems including command, control, communications, computer, and intelligence systems could be integrated into a unique version of the F-35 specifically for Israel.

The deal would also reportedly give Israel an inexpensive path for upgrading hardware and software for future weapons systems. The F-35 is currently in the early stages of production reports Reuters.

Jon Schreiber, a senior Pentagon official told Reuters, "Some time in the future, if policy changes, or things change, that could change as well."

The deal with Israel for the F-35 is tentatively set at an initial buy of 25 aircraft in fiscal 2012 with an option for 50 more. The U.S. will submit its formal offer and pricing to Israel in January and it must be approved no later than June or July with the buy in fiscal 2012 and delivery in 2015.

While no official pricing for the deal has been offered, Schreiber did state that Israel would buy the basic aircraft at the same price as the U.S. and the other co-development partners. A government-to-government sales commission would be tacked onto the deal along with the costs of integrating the Israeli weapons systems.

Israel is expected to be the only country in the Middle East to be offered the F-35 aircraft. Schreiber said that the U.S. is dedicated to maintaining the "quantitative" edge over any regional rivals of Israel.

The F-35 program hit a milestone recently when the first conventional take off and landing aircraft performed its initial flight test. The previous flight tests had been performed by STOVL versions of the F-35. While the F-35 program has seen significant delays, a senior Lockheed executive running the program -- Dan Crowley -- has stated that the program will meet schedule starting in 2011.