AirAsia is in negotiations with Airbus to convert some of its existing narrow-body orders to A321XLR aircraft, said Reuters, citing two industry sources.
Tony Fernandes, CEO of AirAsia owner Capital A Group, told the media outlet last month that he was in talks to buy 50 to 70 of the latest Airbus model within the next three months, but signalled the first priority was to complete the group's financial reorganisation.
The report said that a deal could come as early as this week when Malaysian Prime Minister Anwar Ibrahim visits Paris, the sources said. A separate source said a deal was not guaranteed.
The airline is one of Airbus' largest customers, with more than 350 planes on order.