SAN FRANCISCO, Dec. 21 (Xinhua) -- U.S. aerospace giant Boeing confirmed Thursday that it is discussing with the Brazilian aircraft manufacturer Embraer on a possible acquisition deal.

Boeing said in a press release that "the Boeing Company and Embraer today confirmed the two companies are engaged in discussions regarding a potential combination, the basis of which remains under discussion."

Embraer, based in Sao Paulo, the richest state in Brazil, is an aerospace conglomerate that produces commercial, military, executive and agricultural aircraft and provides aeronautical services in the South American country.

But Boeing declined to forecast any specific outcome to be achieved from their negotiations, saying "there is no guarantee a transaction will result from these discussions."

"Any transaction would be subject to the approval of the Brazilian government and regulators, the two companies' boards and Embraer's shareholders," Boeing said.

Media reports said earlier in the day that Boeing would be willing to pay a big premium for the acquisition of Embraer, which is valued at about 3.7 billion U.S. dollars.

If Boeing were to successfully conclude the deal with the Brazilian company, it would help Boeing snatch a bigger share in the regional jet industry in South America.