Rolls-Royce is reportedly set to invest £3 billion in the development of a new engine for next-generation narrow-body aircraft, mainly used for short-haul flights, with the aim of creating and supporting 40,000 jobs in the UK.The British engineering company has informed senior government officials that the project could be a once-in-a-generation opportunity.

As part of the initiative, Rolls-Royce is requesting state subsidies to help fund the development of a fully certified engine ready for production, the Financial Times reports. The company claims that the project has the potential to generate 40,000 skilled jobs, both within Rolls-Royce and across the broader supply chain, and could contribute up to £120 billion to the UK economy over the course of the programme.

While it’s unclear how much of the estimated £3bn cost Rolls-Royce is seeking from the government, sources familiar with the matter indicate that the company is prepared to make a significant investment itself. In the past, it has received research and development funding from the government, along with launch support for previous engines, including its Trent XWB.

Labour’s new industrial strategy, set to be published this summer, has prioritised advanced manufacturing - Rolls-Royce believes it should be at the top of the list for any governmental support.

Currently, Rolls-Royce builds engines that exclusively power widebody aircraft that serve international routes such as Airbus A350 jets and Boeing’s 787 but left the narrow-body market more than a decade ago when it pulled out of a joint venture with Pratt & Whitney of the US.

Narrow-body aircraft are the workhorses of many airlines, predominantly used on short-haul routes.

The company has invested more than £500m on a demonstrator of its new UltraFan engine which aims to be 25% more efficient than Rolls-Royce’s first Trent engines. Last year, the group announced it had begun work on a “scaled-down” version of the UltraFan which would be designed to power narrow-body aircraft.

At the same time, Airbus and Boeing have been developing new designs for narrow-body planes. The former claims to be in talks with all engine makers.