French aerospace and defence industries group Safran and US conglomerate General Electric have reached a multi-billion dollar deal to provide engines for China's new C919 passenger jet, Safran said Monday.

The C919 -- built by state-linked Commercial Aircraft Corporation of China (COMAC) and due to be ready for service in about 2016, according to state media -- is seen as a future competitor to the Airbus A320 and the Boeing 737.

Safran chief executive Jean-Paul Herteman said the contract, signed Monday during an official visit by French Prime Minister Francois Fillon, was worth an initial five billion dollars each to Safran and GE.

The French group and the US giant, which together operate the CFM International joint venture, have been partners since 1974, and count Airbus and Boeing among their clients.

"This is a significant contract," Herteman told reporters, adding that its value over 30 years could total 15 billion dollars.

The C919, which would have a maximum of 190 seats, will be equipped with Leap X engines, the latest developed by Safran in concert with GE.

"This is a new generation of engine that offers a 10 percent improvement in terms of fuel consumption and greenhouse gas emissions," Herteman said.

The joint venture will also provide nacelles -- the covers housing the engines -- for the aircraft.

The deal would create 8,000-10,000 direct jobs in France, and three to four times that number for various subcontractors, Herteman said.

The partners are looking into the viability of establishing an assembly line facility in China, he said.

"The Chinese market will represent 20 percent of the global aviation market in the next 20 years," Herteman said.

"We have everything to gain from the development of China."

COMAC was set up last year, tasked with developing a large aircraft that could compete with planes produced by industry leaders Airbus and Boeing, thus making China a player on the global stage.

Chinese media reports have estimated that the country's airlines will need a total of 1,600 new passenger jets by 2020 and 3,000 by 2050.

COMAC already markets the ARJ21, China's first 90-seat regional jet.