Boeing is in advanced talks with a leading union to assemble its new 777X jet and build its wings in the Seattle area, a source familiar with the negotiations told Reuters.
Under the proposed deal, final assembly of the 777X would be at Boeing's Everett plant near Seattle, home to all its wide-body production except the 787 Dreamliner, whose assembly is split between Everett and North Charleston, South Carolina.
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The plane's expanded wings would be built in the surrounding Puget Sound region, the source said on Monday, asking not to be identified because the talks remain confidential.
Talks are "in the final stages, but are not done yet," the source said, adding that the negotiations, which were initiated quietly between Boeing and the International Association of Machinists union around a week ago, were "intense".
Barring an agreement, Boeing is expected to open up similar negotiations with other potential locations.
In Europe, a spokesman for Boeing declined to comment.
(Reporting by Tim Hepher; Editing by Jane Barrett and James Regan)