Defence company BAE Systems is looking at all options to win back a $20 billion tender with the Indian air force, the company's chief executive told the Financial Times on Tuesday.

I will be discussing with our partners what we do next. In my view, all options are on the table, BAE Chief Executive Ian King was quoted by the FT as saying.

India preferred a bid from France's Dassault aviation last month, after competing with BAE to secure a 126 aircraft contract.

Dassault's Rafale fighter jet undercut BAE's Eurofighter Typhoon, an Indian government source told Reuters when the contract was agreed.

The FT cited King as saying BAE was considering reducing the price of the Typhoon, but needed to consult with its partners in Germany, Italy and Spain on the best options open.

(Reporting by Stephen Mangan)