COPENHAGEN, March 3 (Reuters) - Budget carrier Norwegian

has agreed to buy 10 Boeing 737-800 aircraft that are

currently part of its leased fleet, the airline said on Monday.

The transaction is expected to close during the first

quarter and will initially be funded through the company's cash

reserves, though the airline is looking at securing long-term

financing after completion, Norwegian's statement said.

"This move is expected to deliver both short and long-term

cost savings, as well as provide additional flexibility for

future fleet planning," said Chief Executive Geir Karlsen.

Norwegian said it expects to book a non-recurring gain of

about 570 million Norwegian crowns ($50.7 million) as a result

of the deal.

"This gain reflects the pricing the company has been able to

achieve for the aircraft and the corresponding reduction of

existing lease liabilities," Norwegian said.

The deal is also expected to yield recurring cost savings of

about 200 million crowns a year, net of financing costs, it

added.

($1 = 11.2452 Norwegian crowns)

(Reporting by Stine Jacobsen

Editing by David Goodman

)