The Brazilian Federal Government and Saab have been negotiating on the deal since December last year, officially signing the contract on Monday.
Brazil will buy 36 Gripen NG fighter aircraft including their related systems and equipment. The fleet will be comprised of 28 single-seat and eight two-seat Gripen NG.
The deal comes with a technology transfer to Brazilian industry to be performed over a ten-year period.
"We are proud to stand side-by-side with Brazil in this important programme. There is already a long and successful history of industrial co-operation between our two countries, and this historic agreement takes that partnership to a new level," Marcus Wallenberg, Chairman of Saab's Board of Directors, said in a statement.
The CEO of Saab, Håkan Buskhe, said the new contract validates Gripen as "the most capable and modern fighter system on the market".
"It solidifies Saab’s position as a world-leading fighter aircraft producer and strengthens our platform for growth," he added.
The aircraft will be delivered between 2019 and 2024.