In 1984, General Dynamics proposed the Agile Falcon as a counter to new Soviet fighters such as the MiG-29 and the Su-27. It was designed to make use of some of the already-planned improvements to the Fighting Falcon known as MSIP IV. In addition, it had a 25-percent larger wing and was powered by an improved General Electric F110-GE-129 or Pratt & Whitney F100-PW-229 engine. Very little interest was attracted at that time.
Not giving up easily, General Dynamics proposed the Agile Falcon as a low-cost alternative to the F-22 Advanced Tactical Fighter. It was intended for the US and the four original F-16 NATO members, General Dynamics arguing that the new European fighters such as the Dassault Rafale and the SAAB Gripen lacked the performance and avionics to deal with the MiG-29/Su-27 threat.
In October 1987, the USAF announced that they might develop the Agile Falcon on its own even if the European partners backed out of the program. However, in the current military drawdown, the Agile Falcon program remains in limbo, and is unlikely to proceed any further.