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Boeing 737 MAX to be built in Renton, Wash.

Machinist Union officials told a news conference Wednesday in Seattle the Boeing 737 deal includes a four-year contract extension.

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A model of the newly revealed 737-MAX passenger airplane, which feature redesigned CFM International LEAP-1B engines, is photographed in Renton, Wash. Lion Air, a large private carrier in Indonesia, ordered a total of 230 airplanes.

Stephen Brashear/AP/File

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The Boeing Machinists union has announced a deal to build the 737 MAX in Renton, where 737s are currently assembled.

Union officials told a news conference Wednesday in Seattle the deal includes a four-year contract extension.

The news came as an Associated Press source said the union had reached a tentative deal to settle a contentious National Labor Relations Board dispute with the company

Boeing announced the 737 MAX in August. It will have new engines to improve fuel efficiency and compete with the Airbus A320neo. Boeing did not announce where the 737 MAX would be assembled. The state of Washington launched a campaign to retain jobs.

Boeing has more than 80,000 employees in Washington, mostly at the Renton factory and the widebody factory in Everett.

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