Boeing is said to be coming close to a decision to launch a larger version of its 737 jet within a two-month window.

The decision to launch the 737 MAX10 is being undertaken as a response to counter the robust sales of competitor Airbus' A321neo, Reuters reported on Tuesday (April 25).

The Boeing 737 MAX10 would be an upgrade over the currently supplied 737-9, which can seat up to 220 passengers. By comparison, the Airbus A321neo, which dominates sales over the 737-9 by a ratio of 3:1, can seat up to 240 passengers.

The companies are fiercely competing with each other in an attempt to capture a larger share of the top end of the narrowbody jet market. The market is valuated to be worth $2tn (£1.5tn)over 20 years.

"Boeing is actively engaged in discussions with customers about the 737 MAX 10X," a spokesman told Reuters.

"No decision has been made on the airplane and any discussion on timing of a possible launch would be speculative."

Forbes contributor Scott Hamilton has said that Boeing had undertaken a soft launch of the 737 MAX10 model during the International Society of Transport Aircraft Trading (ISTAT) in San Diego earlier last month.

Hamilton also questioned the interest of airline companies in purchasing the Boeing 737 MAX 10, and mentioned that low cost airlines could be a potential target for the firm.

"By the time the MAX 10 enters service in 2020, Boeing will be only a few years away—perhaps just two or three—from launching a replacement for the entire 737 family," he added.

"Buying the MAX 10 will be like buying last year's automobile model. There will be something newer, shinier and more advanced just around the corner."