The aircraft manufacturer Saab's stock rises 2.8 percent following the reports.
The agreement that has now been approved by the Czech Ministry of Defense must receive the green light from the Czech government to come into effect.
The proposed extension will cost the Czech Republic approximately six billion kronor and includes twelve fighter jets and pilot training, according to a statement on the Czech Ministry of Defense's website.
According to the statement, the price tag is 25 percent lower than the bid Sweden submitted last year.
The extension of the agreement that now appears to be going through is taking place ahead of the Czech Air Force replacing the Gripen planes with American F-35 planes, which are scheduled to begin delivery in 2031.
Earlier, the news agency Reuters also reported on the Czech decision, according to several media outlets.
The Czech Republic has been leasing 14 Gripen planes – twelve single-seat Gripen C and two two-seat Gripen D – since earlier. The contract was previously extended until 2027.
