Citing Swedish sources close to the decision makers, the newspaper said both Saab and the Swedish government expected Lockheed Martin's F-35 Joint Strike Fighter to win the bid as the Danish government has had a role in developing the plane.

"Saab and the Swedish government have, according to Politiken's information, decided not to send a final offer to the Ministry of Defence," the newspaper said.

Airbus and Boeing Co were also invited to bid. The deadline for the four companies is Monday at 12:00 p.m. CET (1100 BST).

Saab declined to comment. The Danish Defence Ministry also declined to comment on the story but said it would issue a news release after Monday's deadline.

Denmark has been involved in the development of the F-35 since 1996 and this has led to orders for Danish subcontractors from Lockheed Martin.

The F-35 Joint Strike Fighter is the most expensive defence programme in U.S. history and Denmark is one of nine partner nations involved.

The plane is designed to replace thousands of ageing F-16s and other warplanes.

(Reporting by Ole Mikkelsen and Teis Jensen; editing by Jason Neely)