After months of delay, the U.S. Department of Defense, or the Pentagon, will select as soon as this week the defense company to design and build U.S. Navy's next stealth fighter, an official and two people familiar with the decision told Reuters, in what will be a multibillion-dollar effort for a jet seen as central to U.S. efforts to counter China.

Boeing and Northrop Grumman are competing to be chosen to produce the aircraft, dubbed the F/A-XX. The new carrier-based jet will replace the Navy's F/A-18E/F Super Hornet fleet, which has been in service since the 1990s.

The decision to move ahead with a selection was made by Defense Secretary Pete Hegseth on Friday, the U.S. official and one of the people said.

The U.S. Navy could announce the winner of the competition to build its fighter as soon as this week, one of the people said. But last-minute snags have delayed progress on the navy jet in the past and could do so again, sources said.

The navy and the Pentagon did not respond to several requests for comment.

Countering China and future naval power

Holdups on F/A-XX highlight broader questions about the future of naval aviation and the role of aircraft carriers in confronting China. Delaying the program or starving it of funds could leave the U.S. Navy without a modern fighter capable of operating from carriers in the 2030s and beyond, potentially undermining the fleet's ability to project power.

The F/A-XX is expected to feature advanced stealth capabilities, improved range and endurance, and the ability to integrate with both uncrewed combat aircraft and the navy's carrier-based air defense systems.