The Israel Aircraft Industries and Gulfstream, a division of

General Dynamics Corporation

(NYSE:GD), will be collaborating on the development of executive jets.

The two will apparently be designing the first supersonic executive jet,

Yedioth Ahronoth

reports.

The collaboration was agreed on during the talks to sell IAI division Galaxy Aerospace to General Dynamics,

Yedioth

writes.

The cost of developing the supersonic executive jet will probably run to hundreds of millions of dollars.