On Wednesday, Swedish Television's investigative program Uppdrag Granskning revealed that the agency had begun negotiations to sell software to China, which experts say could be used in the country's nuclear weapons program.
According to the program, FOI was using Stockholm's Royal Technical College KTH as a go-between to sell the software.
On Thursday, it was uncovered that the Swedish military both knew about and approved of FOI's plans to give the so-called Edge software to the Chinese. It can be used to calculate how airplanes and bombs are affected by aerodynamic forces.
Erik Lagersten, communications director at the Armed Forces, told Swedish Televsion: "It's in Sweden's interest to have Swedish research and development at the forefront, and because this is not subject to any defense interests or harms the Armed Forces, we trust the FOI decision that it was in Sweden's interest."
A draft agreement was sent from KTH to China in March. It has not yet been signed.