Citing an unnamed insider familiar with the team and its eight-month nationwide search, The Times reported that Everett, where Boeing now builds its entire widebody line of 747s, 767s and 777s, was chosen over Kinston, N.C.; Charleston, S.C.; and Mobile, Ala.

The same source has provided accurate information about other important decisions in recent months, according to the article.

The executive team's evaluation was prepared for a meeting of Boeing's board of directors on Dec. 15 at corporate headquarters in Chicago and for review by the company's new chief executive, Harry C. Stonecipher, who visited Seattle on Wednesday.

Boeing declined to comment on the report and noted the board may not make a decision until early next year.

"No decision has been made and we need to review the site evaluations with the board of directors," Boeing spokeswoman Mary Hanson told The Associated Press. "We've said from the beginning that we would not discuss the details of the process."

Stonecipher's visit followed close on the heels of the resignation of Philip M. Condit as Boeing CEO amid concern over the methods the company used to secure a lucrative Pentagon contract for Air Force tankers using the 767 airframe.

Assembling the 7E7 in Everett, about 25 miles north of Seattle, would save thousands of jobs in the Puget Sound area, although the number of direct Boeing jobs would be relatively small because more work is being subcontracted than on aircraft the company now makes.

In an analysis of taxes, transportation, facilities, equipment and labor at each site, Everett had higher costs than the other sites in every category except facilities, according to The Times.

Nonetheless, Everett remained competitive because of a $3.2 billion incentive package that was enacted by the Legislature and signed by Gov. Gary Locke in June.

That package cut the estimated advantage of Kinston - the lowest-cost site, according to the report - to roughly $300 million over 20 years out of a total development cost pegged at $7 billion to $10 billion.

The inside source told The Times the assessment team also was concerned about the impact on morale in the company's Puget Sound work force, which has been reduced by 26,000 jobs since 2001.

A third factor, according to the article, was the state's congressional delegation, which has provided critical support for Boeing on a number of fronts, including the air tanker deal, which could be worth between $16 billion and $21 billion.

Washington state leaders said they have not received word from Boeing that the company has settled on Everett. But they said they are optimistic that Boeing will choose to remain in the state, where the company builds all but one of its commercial jets. Moses Lake, in central Washington, is the only other community in the state under consideration.

The Boeing board is set to hear a presentation of the case for the new plane from Michael B. Bair, head of the 7E7 program, who in turn is expected to get formal approval to offer the plane for sale to airlines.

"Getting the 7E7 launched is the topic of the day," Stonecipher said during his visit, according to an employee e-mail newsletter that was quoted by The Times. "We need to be poised and ready when the market returns."