(Adds dropped word..."Monday"... in paragraph 3.)

MANILA, Sept 5 (Reuters) - China has offered to sell 8 utility helicopters to the Philippine military as it seeks to replace its Vietnam War-era aircraft, a Philippine air force official said on Wednesday.

Defence ties between China and the Philippines -- a longtime U.S. ally -- have grown steadily since 2004 when the two sides launched an annual security dialogue.

Beijing has since donated $2.5 million worth of engineering equipment to the military to help it carry out development projects in areas where communist and Muslim rebels operate. On Monday it promised another $2 million in military aid.

An air force officer, speaking on condition of anonymity, said Beijing had invited them to evaluate its tear-shaped bodied Z9 series utility helicopters manufactured by the Harbin Aircraft Manufacturing Company.

"We have a team of pilots evaluating the Chinese-made Z9 series helicopters in Harbin," an airforce general, who declined to be named, told Reuters. "We're also looking at another type of aircraft that China was offering to sell at cheaper prices."

The Philippines has 40 helicopters, mostly second-hand, donated by the United States as part of military assistance to fight communist rebels and Islamic militants in the south of the mainly Roman Catholic country.

Manila has set aside 3 billion pesos for new utility helicopters.

The government is also looking at buying up to 8 attack helicopters at a cost of 1.2 billion pesos ($25.8 million) and opened bids on Wednesday.

Boeing Co's <BA.N> McDonnell Douglas unit, Agusta Westland <SIFI.MI> of Italy and a state-owned company from Poland are bidding for the attack helicopter contract. The winner will be announced within the week.

In January, President Gloria Macapagal Arroyo promised to spend 5 billion pesos on new helicopters to replace the military's ageing fleet of UH-1H and Bell choppers.

Two helicopters have been lost in recent accidents, including one in April when a chopper on a training flight hit a motorcycle in the central Philippines, killing nine people.

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