The news was broken locally in a front page report in The Leader yesterday.

While it is still subject to official confirmation, there is a strong consensus that the information is correct.

While the Department of Defence has said no final decision had been made, it has confirmed that a preferred tenderer – believed to be BAE – has been notified.

The school, which employs more than 200 people, injects more than $20 million into the Tamworth economy each year.

Tamworth Regional Council general manager Glenn Inglis said council would be delighted if the news, broken by Jane’s Defence Weekly, was right.

“All I can say is we absolutely hope it’s correct. About $20 million goes into the local economy in just wages and salary from BAE Systems. They are a major contributor to our airport and economy. They are a major part of the airport infrastructure,” Mr Inglis said.

“If they are not there, we believe it would have a negative impact on the future of the airport. In summary, they make a major contribution to the efficient running of the airport and its status as a critical airport in Australia.”

Parliamentary secretary to the leader of The Nationals and duty MLC for Tamworth, Trevor Khan, was optimistic the reports were true.

“The news that BAE Systems has (apparently) won the tender is great news not only for the company, but also Tamworth and indeed the trainee pilots,” Mr Khan said.

“From Tamworth’s perspective, I think the risk of us having lost the facility to Sale should sound as a warning for the future. The airport is a fantastic facility and asset for Tamworth, and we need to ensure it is exploited to the maximum benefit for Tamworth.”

The Department of Defence told The Leader no final decision on the Interim Basic Flying Training Services contract had yet been made, but said the preferred tenderer had been notified.

The local office of BAE Systems Australia would not make comment, and said it would not speak to media until the decision was announced in September.

Member for Tamworth Peter Draper also welcomed the development.

“The report, if true, would be wonderful news,” Mr Draper said.