Boeing is planning to submit a new bid for the $35bn US Air Force (USAF) contract to replace 179 aerial refuelling tankers, after the two parties discussed the company’s proposal.

A Boeing spokesman said the revised proposal would represent the company’s best and final offer to the air force, one that matches decades of tanker experience and the best state-of-the-art technology with a proven Boeing airframe to best fulfil USAF requirements.

EADS, Boeing’s competitor, is offering the KC-767, based on its long-haul 767 plane dubbed the “NextGen Tanker”.

The air force is expected to announce its decision on the contract to replace the aging fleet of Boeing 179 KC-135 tanker aircraft in March.

This will be the third time in nearly a decade the USAF has tried to secure a contract for the planes, reports AFP.