Washington, D.C. bureau reporter Scott MacFarlane said that under the plan, each company would get some of the work in the $35 billion program for new air refueling tankers.

Pennsylvania Rep. John Murtha, the head of a powerful U.S. House subcommittee, wants to cut a deal that would end the dispute between the two firms.

Rep. Norm Dicks said Murtha will try to chop the tanker contract in two because he is concerned the battle is wasting time while the U.S. fights wars in Iraq and Iraq and a brokered deal could speed things along.

Boeing's local supporters say it's a raw deal.

"If that's what's decided at the end of the day, we'll have to live with that, but I think we have a chance to win this thing outright," Dicks said.

"The whole thing?" asked MacFarlane.

"The whole thing. And we have the better airplane, a plane that burns less fuel," said Dicks.

It wouldn't be a 50-50 split. The Pentagon would hold head-to-head competitions for each aspect of the job.

Either company could need hundreds fewer workers if they lose part of the contract.

A Northrop Grumman representative said the firm is confident it will end up with at least a large chunk.

Congress next week takes up a spending plan for the two wars. Murtha will likely include the tanker compromise into the spending plan so that to keep paying for the wars, Congress would have to "green light" the tanker deal. MacFarlane said.

A spokesman for Murtha declined to comment.