A major aerospace deal which could safeguard hundreds of West Craven jobs is set to be axed by US President Barack Obama.

The president reportedly wants to scrap a joint Rolls-Royce and General Electric (GE) contract to construct the F136 engine for F-35 military fighter jets across the world.

The scheme is currently under development and fan blades for the engines are being built at Rolls-Royce’s Barnoldswick plant, which employs around 1,000 staff.

However, the F136 is subject to a rival bid by US firm Pratt & Whitney and Mr Obama is said to believe that having two competing constructors of the technology is a waste of American military money.

Union bosses fear that if Mr Obama scraps the Rolls deal, it could prevent a planned £35 million expansion of the Barnoldswick site, including 100 new jobs.

Unite representative Jon Brough said: “This is a major concern for us. We really want to see the F136 go ahead for our long-term future. It is key to us and would mean more equipment. However, if it is shelved it would probably mean we wouldn’t get the expansion.”

Last week, bosses from Rolls-Royce and US giant GE were said to be lobbying in Washington to stop White House funding being withdrawn from their bid and effectively handing the huge $50 billion contract to Pratt & Whitney.

The British defence company says having two competing bids for the F136 engine will, in the long-term, save the US government around $20 billion.

A Rolls-Royce spokesman said: “This is not a technical issue, but a financial one for the US government.

“There are a number of programmes that need to be funded, but a finite number of resources so the Government is looking at how it can stay on budget.”

The Rolls/GE contract with the US government is believed to end today (Thursday) and a decision from the White House on whether the bid will be axed is expected in the next month.

The F-35 fighter jet project, which also involves BAE Systems, would include around 5,000 military engines. Rolls-Royce said the first engines should be ready to be sold in 2012.