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DENVER—U.S. Sen. Mark Udall says word that the NASA space capsule Orion won’t be terminated is good news for Colorado.

The Colorado Democrat was reacting to reports Tuesday by unnamed Obama administration officials that the president will announce Thursday that the NASA crew capsule concept will be revived.

The capsule is part of the $100 billion Constellation program, which Obama said last year would be canceled.

Lockheed Martin Space Systems in Jefferson County outside Denver is developing the crew capsule. Udall has said canceling the capsule would lead to the loss of 1,000 jobs.

Udall says Tuesday’s news shows that NASA Administrator Charlie Bolden and the White House understand Colorado officials’ concerns.

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