Aeronautics has received a bid from Israeli state-owned Rafael Advanced Defense Systems and business man Avihai Stolero of £180.3m for the business.
The UAV manufacturer saw its shares rise by 37% when news broke that it received the bid on Sunday.
According to a report from Reuters, the new bid is an improvement on one it received for £91.2m in August, from the same buyer.
Aeronautics, which had a market worth of £107.5m on January 10, said the latest offer for all its shares would be done as a reverse merger executed through a company jointly owned by Rafael and Stolero.
The company would then become private and its shares delisted from the Tel Aviv Stock Exchange.
Aeronautics went on to confirm that it had agreed to hold talks with the potential buyers and committed to giving them exclusivity.
Negotiations are due to take place from February 15.