Bombardier is Northern Ireland's largest manufacturing employer

Canadian firm Bombardier is currently examining a new type of aircraft seating up to 130 passengers.

Chief executive Paul Tellier said it should not be assumed the aircraft would be assembled in Canada, but where it gets the best public backing.

He said the company may assemble the new plane at the Shorts plant in east Belfast if there is more government financing available.

If the move goes ahead, it is expected to create significant levels of new work.

Mr Tellier told a gathering in Montreal on Tuesday: "We have a first-class facility with an excellent labour force in Belfast."

However, he said no decision has been made.

BBC Northern Ireland business editor James Kerr said: "This is potentially a major shift by Bombardier which, since it bought Shorts almost 15 years ago, has used the Belfast factory to build major parts for aircraft.

"But there's never been any suggestion that whole aircraft would once more be assembled here."

Last month, Bombardier confirmed an order for regional jets worth about �350m.

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Bombardier said the order, from a US regional airline, was for a mixture of 70 and 90 seat aeroplanes, which are part-built at the Belfast factory.

The deal meant that some of the options held by Mesa Airlines for new planes had been converted into firm orders.

Meanwhile, UUP East Belfast Assembly member Sir Reg Empey has urged the government to give its full support to Bombardier if it comes up with a proposal to introduce final assembly of a new aircraft at Shorts.

Former Industry Minister Sir Reg said: "We cannot assume that Shorts' parent company is intending to carry out the work here but certainly signals are being made.

"And while I would urge caution on jumping in to proclaim any development, it must be pointed out that the government has a duty to provide the best incentives it can to attract work of this type back to Shorts which has a proud history in aviation industry."

A dispute at the company over pay and cost-cutting has dragged on for six months.

Negotiations to resolve the dispute between the company and the unions are still continuing.

Management said there would be no redundancies before the end of March and a controversial new shift is being discussed as part of wider pay negotiations.

Shorts cut 600 jobs last May. The firm said a further 580 posts would go before next April but this was reduced last August to fewer than 100.

Shorts said its programme of cutbacks was in response to what it called "very challenging market conditions".