The Associated Press has learned that Boeing will soon announce plans to make a bid for the Air Force's troubled $35 billion refueling plane contract.

Two people familiar with the company's decision say Boeing is expected to offer a military version of its 767 passenger jet to the Air Force for a new fleet of 179 new jets.

The people asked not to be identified because the formal announcement has not yet been made.

Boeing's rival Northrop Grumman has said it may not bid for the plane, which has been delayed for seven years and has become symbolic of problems with the way Pentagon hands out contracts.

The Air Force needs to replace its fleet of refueling planes, some of which date back to the 1950s.

Northrop and Boeing have fought over who will get the contract.