UPDATE 2-Lockheed wins $797 mln deal for Turkish fighters

(Adds details)

WASHINGTON Feb 24 (Reuters) - Lockheed Martin Corp (LMT.N) has won a $797 million contract modification to supply 14 F-16C and 16 F-16D Block 50 fighter jets to the Turkish government, the Pentagon said on Tuesday.

The Air Force modified an earlier firm, fixed-price contract with Lockheed, the Pentagon said in its daily digest of major arms deals.

In September 2006, the Pentagon approved the sale to Turkey of the 30 fighter jets, engines, radar and electronic warfare equipment, a deal valued at $2.9 billion if all options were exercised.

At the time, it said the sale would improve Turkey's ability to defend its own borders and better contribute to U.S.-led anti-terrorism efforts and NATO operations.

Lockheed, which signed a contract with Turkey in May 2007 for its part of the work, a deal valued at $1.78 billion, won an initial amount of $187 million in July 2007 to begin purchasing long-lead items for the fighter jets.

Tuesday's contract announcement paved the way for actual production work to begin on the aircraft, said a Lockheed spokeswoman. (Reporting by Andrea Shalal-Esa; Editing by Gary Hill and Jeffrey Benkoe)