WASHINGTON, September 10, 2008 (AFP) - The Pentagon has cancelled a 35 billion dollar competition for a new air refueling tanker, leaving the politically charged decision to a new administration, US Defense Secretary Robert Gates announced Wednesday.

'It is my judgment that in the time remaining to us, we can no longer complete a competition that would be viewed as fair and objective in this highly charged environment,' Gates said in a statement.

'The resulting 'cooling off' period will allow the next administration to review objectively the military requirements and craft a new acquisition strategy for the KC-X,' he said.