U.S. officials said India was told by the Bush administration that the United States would not permit the sale of the Arrow-2, developed with Washington in a joint project over the last 15 years. The officials said the range of the Arrow-2 medium-tier system would affect the balance of power with neighboring Pakistan.

Instead, the Defense Department has offered India the Patriot Advanced Capability, or PAC-3 system for New Dehli's missile defense requirements. Officials said India relayed a formal request for the PAC-3 in September as part of a proposal that New Dehli join a U.S.-led missile defense umbrella.

Officials said the sale of the PAC-3 system to India is probable but not certain. They said the State Department and Congress want firm assurances that India will not transfer U.S. missile technology to any third country, particularly Iran.

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