The agreement is subject to Air France obtaining approval from its board next Tuesday, after which a formal announcement is planned.

The partnership, which was reported in the French economic newspaper Les Echos, lays the foundation for a major new global alliance and marks a much-needed break for Atlanta-based Delta, which has been stymied by a series of setbacks in its quest to expand its international reach through alliances.

The French carrier holds a strategic spot in the global-alliance landscape, because of its major presence in Europe, the Middle East and Africa. Particularly attractive to Delta is Air France's stronghold at Paris' Charles de Gaulle Airport, which is expected to add two new runways by 2001 and increase its aircraft capacity by 50 percent.

``It's a good fit,'' said Glenn Engel, an airline analyst with Goldman, Sachs & Co in New York. Charles de Gaulle Airport, he added, ``is a geographically well-situated hub airport with more room to expand capacity than other hubs in Europe.''

Delta, the No. 3 US carrier, and Air France are expected eventually to seek anti-trust immunity to share sensitive details on pricing and strategy. Such cooperation, however, wouldn't be permitted until the US and France reach an open-skies accord, a development that could be several years away unless Air France pushes its government to act sooner.

Together, Delta and Air France hold about 20 per cent of the trans-Atlantic market. The strength of pairing Air France and Delta, both of which have been also-rans in the alliance race until now, should make them more attractive in luring Asian and other carriers to the partnership -- a key part of their strategy. Major airlines are scrambling to stitch together global alliances as a way of increasing revenuewith a minimal capital investment.