There are hopes that hundreds of north Wales aircraft jobs have been secured by a European consortium becoming the preferred bidder for a £13bn contract.
The Airbus factory at Broughton in Flintshire is part of the AirTanker consortium, and was visited by Defence Secretary Geoff Hoon on Monday.
Mr Hoon announced the group was the preferred bidder to build aircraft for refuelling military jets in mid-air.
Airbus would make wings for the AirTanker, if the contract is awarded.
Workers in Flintshire already manufacture wings for Airbus' "superjumbo".
The AirTanker consortium has been in talks with the Ministry of Defence over the contract, which would last for 27 years.
Other firms in the consortium include Rolls-Royce, Cobham and Thales.
More than a year ago, the consortium, led by Airbus' parent company EADS, was tentatively chosen for the deal, which is set to become the UK's largest private finance initiative (PFI) project.
Since then, negotiations have been taking place between the MoD and AirTanker executives.
Mr Hoon said the government could "now move ahead with the negotiations on the contract".
The RAF deal is to provide and maintain a fleet of about 20 so-called "filling stations in the sky".
AirTanker proposes using Airbus A330-200 planes to refuel fighter jets and other RAF aircraft.
When the planes are not being used for refuelling, they would be converted to passenger planes and used on charter flights or military transport trips.
They would then be converted back to their military role when needed. The first plane could be ready by 2010.
Long-term security
The contract would give AirTanker a foothold in the lucrative military market, which has long been dominated by rivals Boeing.
And AirTanker's chief executive, Robin Southwell, said the contract could lead to other deals.
"It is further progress for consolidating job security on the site"
"We will able to, with credibility and determination, compete in the US market where they require many hundreds of aircraft," he said.
"We are pleased to see the department of defence in the US are very interested in what is going on here," he added.
If the contract is confirmed, it would give long-term security to the workforce at the Airbus plant, where more than 6,000 people work.
Alwyn Rowlands, the north Wales official for the union Amicus, said he was "very pleased" at the news.
"It is further progress for consolidating job security on the site," he said.
He added that preferred bidder status meant the AirTanker consortium was top of the MoD's list for the deal, and it was "highly unlikely" that officials would change their minds later.
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