EAD is seeking three more months to prepare a bid to build a multi-billion dollar US aerial-refueling fleet in the latest twist in a nearly decade-long saga, the Pentagon said Friday.

"We're considering that request," Bryan Whitman, a department spokesman, told reporters at the Pentagon. The current deadline is May 10.

A contest would pit EADS, Airbus's corporate parent, against Boeing, its arch-rival in the commercial airliner market.

Northrop Grumman and EADS had bested Boeing in a similar race two years ago, only to have their award cancelled after US government auditors found the Air Force had failed to apply its own judging rules.

Los Angeles-based Northrop, which would have been the prime contractor, withdrew on March 8 from the latest contest, saying the Pentagon's final tender "clearly favors" Boeing's 767-based tanker over the Airbus A330 derivative pitched by EADS.

EADS could rejoin the race if it determines "there is a fair chance to win, after evaluating all relevant factors," the company said on Friday.

The Pentagon, battling charges of protectionism, had reiterated on Thursday that it would welcome an EADS bid and would consider a "reasonable" extension of time.

Whitman declined to define what the Pentagon had in mind as a reasonable delay. He said the Pentagon considered EADS a "qualified" offeror.

EADS' North American unit likely would become its own prime contractor rather than seek to partner again.

The company has not yet decided to bid, said Guy Hicks, an EADS spokesman in Washington.

Extending the deadline for bids is a critical first step, Hicks said.

EADS North America became a prime contractor for the Pentagon after it was selected in 2006 to build UH-72A Lakota light utility helicopters for the US Army.

In line with Northrop, EADS has said the US Air Force's terms for the tanker contract, valued at up to USD$50 billion, were skewed in favor of Boeing's smaller 767-based tanker and do not give enough credit for the added capability of a larger tanker based on the Airbus A330.

The Airbus model has been chosen over Boeing 767 derivatives as a tanker by Australia, Britain, the United Arab Emirates and Saudi Arabia in the four most recent contests, according to EADS.

The US Defense Department said on Thursday it invited proposals from qualified contractors and, if necessary, would consider pushing back the deadline. Geoff Morrell, the Pentagon press secretary, added that this was not unusual, citing a half dozen cases where deadlines had been extended.