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(Adds details on deal)

By Tim Hepher

PARIS, July 28 (Reuters) - German leisure airline Condor said on Wednesday it would order 16 Airbus A330neo jets to replace a wide-bodied fleet of Boeing 767 aircraft.

"The first aircraft is expected in autumn 2022, whilst the replacement of the entire long-haul fleet is scheduled to be completed by mid-2024," Condor said on its website.

It did not say how it would acquire the planes but market sources said it was expected to buy an unspecified number from Airbus with the rest to be rented from leasing companies.

The deal comes a day after EU regulators approved 525.3-million euros ($619.3 million) in German aid for Condor that will help the airline restructure after an earlier decision was annulled by a European court. .

It follows a competition between Airbus and Boeing to provide the A330neo or Boeing 787 to Condor, the sources said.

Condor has a mixed fleet of planes from both planemakers, but relies solely on its ageing 767s for long-haul needs.

The A330neo is an upgraded version of the A330 passenger plane with recent Rolls-Royce engines. It competes with the newer but more expensive Boeing 787 Dreamliner.

The sources said the deal will provide homes for undelivered A330neo jets originally earmarked for Indonesia's Garuda

or AirAsia X of Malaysia - debt-strapped carriers whose finances have worsened during the pandemic, raising doubts over A330neo deliveries.

Reuters reported earlier on Wednesday that Airbus was also in talks to replace Boeing jets at another European leisure carrier, British airline and holiday group Jet2 .

If confirmed, the deal could involve the purchase of around 50 Airbus jets, worth some $5 billion before industry discounts of at least 50%. But while Airbus is seen as front-runner, talks between Jet2 and suppliers are said to be ongoing.

(Reporting by Tim Hepher; editing by Jonathan Oatis and Grant McCool)

((tim.hepher@thomsonreuters.com; +33 1 49 49 54 52; Reuters Messaging: tim.hepher.thomsonreuters@reuters.net))