MOSCOW, Sept 8 (Reuters) - China has agreed to buy 38 military planes from Russia in a sale that could be worth more than $1.5 billion, Russia's Vedomosti business newspaper reported on Thursday.

It said the deal will be signed later on Thursday.

Chinese Defence Minister Cao Gangchuan is in Moscow to discuss military cooperation with his Russian counterpart Sergei Ivanov, including arms sales from Russia, the world's No.2 arms exporter.

Vedomosti quoted a Russian source familiar with the progress of talks between the two defence ministers as saying China would buy Ilyushin Il-76 transport aircraft and Il-78 re-fuelling planes.

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