ATHENS, April 3 (Reuters) - Greece has approved the

purchase of 35 UH-60M Blackhawk helicopters from U.S defence

contractor Lockheed Martin Corp ( LMT ) in an effort to

modernize its armed forces, two people with knowledge of the

deal told Reuters.

"The deal passed by the parliament's committee is to buy 35

helicopters for 1.15 billion euros ($1.24 billion)," a

government official told Reuters.

A second person confirmed the approval, which was agreed

late on Tuesday.

Greece aims to revamp its defence industry and boost its

shipbuilding industry, as it recovers from a decade-long debt

crisis that forced it to slash spending.

The government has drafted a multi-billion, 10-year

purchasing plan, that includes acquiring up to 40 new F-35

fighter jets from the U.S. and three frigates from France.

Athens is also in talks with the United States to co-design

and build Constellation-class frigates for the Greek Navy.

($1 = 0.9291 euros)