During 1974, production of the Nesher was phased out in favour of a more advanced Mirage derivative which had been planned in parallel to the Nesher. The principal difference of this derivative was the replacement of the Atar engine by an Israeli-built General Electric J79 engine. The J79 was a popular American engine for combat aircraft, having already been used on fighters such as the Lockheed F-104 Starfighter and the McDonnell Douglas F-4 Phantom II. The resulting aircraft was given the name IAI Kfir.