Amazon is rethinking its decision to create an additional headquarters in New York City amid opposition from key political leaders and protests in the community, the Washington Post reported Friday.

The Post, which is owned by Amazon chief executive Jeff Bezos, cited two sources familiar with the company who spoke on condition of anonymity.

The report comes after the appointment of an Amazon critic to an oversight board with the potential to veto the deal for one of two locations selected by Amazon for its "HQ2" along with a site near Washington, DC.

Several local officials and newly elected Representative  Alexandria Ocasio-Cortez, whose district borders the proposed Amazon site, opposed the Amazon deal over concerns that the promised 25,000 jobs could worsen an already overpriced housing market and strain local infrastructure.

The plan announced last year was backed by New York Governor Andrew Cuomo and the city's Mayor Bill de Blasio, but has been the object of demonstrations in the following weeks.

Critics claim the deal offers too many subsidies to one of the world's largest companies which is led by the richest man in the world.

Amazon did not immediately respond to an AFP query.

It's not clear what Amazon would do if it dropped the plan for New York. It has won approval for a location in the Virginia suburbs of the US capital as it outgrows its headquarters in Seattle, Washington.