The move, to be announced this week at the Paris Airshow, follows the resolution of a standoff between the helicopters unit of Airbus Group (>> Airbus Group) and the French government over funding for the project, currently code-named X6.

Talks over the use of development loans, similar to those provided by European governments to the main Airbus planemaking division, ran into problems earlier this year, but French Prime Minister Manuel Valls last month hinted at a breakthrough.

Airbus Helicopters is expected to announce on Tuesday that it is undertaking detailed development studies, the people familiar with the matter said.

Under a compromise over funding, France and Germany will provide several hundred million euros in development loans.

Similar funding was used for the H160, until recently known as X4, which is making a European debut at the June 15-21 show.

The X6 is widely described as a successor to the Super Puma, a workhorse of the offshore oil industry, though one person said that model would continue to be produced.

Competitors for the new project include Sikorsky (>> United Technologies Corporation), AgustaWestland (>> Finmeccanica SpA) and Bell Helicopter (>> Textron Inc.).

(Reporting by Tim Hepher; Editing by Jonathan Oatis)