FRANKFURT German defense group Rheinmetall is set to sign a 2.7 billion euro ($3.7 billion) deal in the coming weeks for the production of 980 Fuchs 2 military vehicles for Algeria, newspaper Handelsblatt reported on Wednesday, without citing sources.
Germany said this month it would adopt a more cautious approach towards arms exports after a 24 percent surge last year fueled a domestic debate on military sales.
It was the world's third-largest arms exporter after the United States and Russia from 2008 to 2012.
Handelsblatt said the contract for the Fuchs 2 armored personnel carriers is part of a bundle of deals with the north African country worth 10 billion euros for German companies including ThyssenKrupp and Daimler.
ThyssenKrupp will deliver two frigates, while Daimler will be a technology partner for the production of trucks and military vehicles, the paper reported.
Officials at the three companies were not immediately available for comment outside business hours.
A spokesman for the German economy ministry declined to comment.
($1 = 0.7345 Euros)
(Reporting by Harro ten Wolde; editing by Jason Neely)