"There is a real possibility we will transfer to India, on a 10-year lease, several nuclear-powered submarines of the same class as the Nerpa," said the head of the state arms cooperation service, Mikhail Dmitriyev.

The Nerpa was the Project 971 Shchuka-B submarine involved in last month's accident.

"According to the contract, it isn't a sale of submarines to India but rental to India's navy," he said.

The Shchuka-B is a high-speed Soviet-designed attack submarine capable of carrying nuclear weapons.

Russian officials denied during last month's accident press reports that the Nerpa was intended for sale to India and have since said the vessel will be used by Russia's navy.

Investigators determined that 20 people suffocated to death when fire-fighting equipment was accidentally triggered in one of the submarine's compartments during sea trials off the Russian Pacific coast.

Press reports have said India plans to lease two of the Project 971 Shchuka-B submarines.

Dmitriyev also said Russia would in the next two to three years supply India 80 Mi-17 helicopters, following the signing of an agreement during a visit to New Delhi by President Dmitry Medvedev earlier this month.

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