OTTAWA, May 27 (Reuters) - Canada, which says it wants to reduce reliance on U.S. defense firms, on Wednesday announced plans to buy a fleet of early warning planes from Sweden's Saab rather than a competing option from Boeing ( BA ).

Prime Minister Mark Carney told reporters that Canada would opt for Saab's GlobalEye, which is based on Bombardier's Global 6500 jet. Boeing's ( BA ) E-7 Wedgetail plane - which has suffered from delays and cost overruns - had also been in contention.

"(This move) builds Canadian strategic autonomy, creates Canadian jobs, and reinforces Canada's position as a global leader. And it is the product of choice for many of Canada's partners, including France, Sweden, and the UAE," Carney said.

Saab is also in the running to sell Canada some of its Gripen fighters.

Canada has a deal to buy 88 F-35 jets from Lockheed-Martin ( LMT ) but last year, after the United States slapped tariffs on key Canadian imports, Carney asked the military to probe whether it could cut back the order and buy some planes from another manufacturer. The government has yet to announce a decision.