"We are currently in negotiations on delivering our fighter aircraft, including MiG-35s, to Algeria," Anatoly Belov said.
Algeria has requested that Russia deliver between 14 and 16 additional Su-30 Flanker fighters in exchange for the MiG-29s.
Russian arms export monopoly Rosoboronexport signed a $1.3-bln contract to deliver 29 single-seater MiG-29SMT fighters and six two-seater MiG-29UB fighters to Algeria in March 2006 as part of an $8 billion military-technical cooperation agreement.
After receiving 15 MiG fighters, Algeria refused further deliveries in May 2007 and froze all payments with Russia in October 2007. Algeria claimed the MiG-29s were of "inferior quality" and demanded that Moscow take back all the fighters delivered.
The aircraft were eventually returned to Russia in April this year and following additional tests could go in service with the Russian Air Force.
Under a 2006 contract, worth about $2.5 billion, the Irkut corporation is supposed to deliver a total of 28 Su-30MKA fighters to Algeria until 2010. The company has supplied six aircraft so far.
The Irkut Corporation, part of Russia's United Aircraft Corporation (UAC), created in 2006, manufactures variants of the famed Su-30MK for India, Algeria, and Malaysia.