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Ukraine plans to allocate 2.5 billion euros ($2.9 billion) from an EU loan for the new aircraft, the Swedish government said in a statement.
Regarding the latest model Gripen E jets, "the aim is to quickly conclude a final agreement with deliveries as of 2030", Prime Minister Ulf Kristersson said at a joint press conference with President Volodymyr Zelensky at an air base in Uppsala, 70 kilometres (45 miles) north of Stockholm.
The 16 donated aircraft will be delivered in early 2027, Kristersson said.
"This is a historic decision for Sweden, but it also strengthens Ukraine's air defence significantly," he added.
The two countries signed a letter of intent in October on Kyiv's purchase of 100 to 150 Gripen E aircraft.
Zelensky said Ukraine, battling Russia's invasion since 2022, hoped to buy all 150 planes.
"We hope we will be able to secure financing for all of them," he said.
Sweden in 2024 suspended plans to send Gripen jets to Ukraine after partner countries requested that priority be given to providing US F-16 fighters.
Thursday's announcement was part of Sweden's 22nd military aid package to Ukraine, worth a total of 25.2 billion kronor, the Swedish government said.
The Scandinavian country is a strong supporter of Ukraine, providing military aid worth more than 128 billion kronor ($13.7 billion) since the start of the Russian invasion.
Zelensky meanwhile said Kyiv was awaiting a formal response from the United States to its request for more ammunition for its Patriot air defence systems to counter Russian ballistic missiles.
Ukraine is largely reliant on its Western allies to down Russian missile barrages, despite having pioneered a system for intercepting long-range drones that is the envy of some of the world's most advanced militaries.
Zelensky sent a letter to US President Donald Trump and the US Congress, dated May 26, asking Washington to either supply more Patriot missile systems or give Ukraine licences so it can produce its own.
"We are expecting a response," Zelensky said, adding that he had met with members of Congress and senators on Wednesday.
"They support the proposals that were addressed to Congress and to the White House," he said, adding that he was "counting on an official response".
"I believe they need to act faster. We are insisting, very insistently. Winter is ahead," Zelensky said.