The person, who requested anonymity because a public announcement has not been made, says the company would build A320s there.
The A320 is a widely-used plane flown by U.S. airlines, including Delta and US Airways. An Alabama plant would have Airbus building planes squarely in the territory of archrival Boeing.
The plan was first reported by The New York Times, citing anonymous sources, who said that an announcement could come as soon as Monday.
Airbus has said it wants to expand, and that it favours a site in the Southern U.S. A spokeswoman says no decision has been made by the company's board.