The Canadian government is expected to announce on Monday that it is moving forward with finalization talks towards procuring Lockheed Martin's F-35 fighter jet, according to an industry source.

The announcement is not expected to be a formal contract award but moves the decades-long process of replacing the country's aging CF-18s into the finalization stage, where talks narrow to one preferred bidder.

The competition narrowed to just two final candidates in December 2021 as Boeing exited the contest, leaving Lockheed Martin's controversial F-35 and Saab's Gripen jet as the remaining bids.

The expected announcement comes amid escalating questions about the demands placed on the Canadian Forces as the Russian invasion of Ukraine continues.

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