Defense Secretary Pete Hegseth will shortly announce which defense company the Pentagon has chosen to design and build the U.S. Navy‘s next-generation stealth fighter, known as the F/A-XX, according to a report by Reuters, citing unnamed officials and people familiar with the decision.

The announcement may come this week, Reuters reported, after Hegseth made the decision to move forward on Friday.

Boeing Co and Northrop Grumman Corp are in the running to produce the aircraft, which will replace the Navy’s F/A-18E/F Super Hornet fleet that has been in service for three decades. 

Reuters said that the U.S. Navy could announce who will be picked to build its fighter as soon as this week. 

The F/A-XX is expected to have advanced stealth capabilities, improved range and can integrate with both uncrewed combat aircraft and the Navy’s carrier-based air defense systems. The aircraft is viewed as being central to countering the military threat posed by China.  

This is a breaking news story. Updates to follow.