The Armed Forces say that the U-turn is due to a "deteriorated security situation" in Sweden.
Göran Mårtensson, Director General of the Swedish Defence Materiel Administration, FMV tells Swedish Radio it makes economic and strategic sense to service the engines at home.
This is for a heightened state of readiness and it is a step to retain knowledge in Sweden but it's also to get a cost-effective solution in the long term. And it allows us to build up spare parts and components in Sweden and handle this within the country."
When Sweden decided in 2013 to buy engines for the new faster model Gripen E, it was also agreed that the engine maintenance should be carried out by General Electric in the USA. Those plans are now being scrapped - and the maintenance of the E-series engines will also take place in Trollhättan, where today's models of Gripen C and D jets are maintained by the company GKN Aerospace.