During the autumn of 1935, the considerable potential of the Fieseler Fi 156 project for the tasks of short-range reconnaissance and aerial observation had prompted the RLM to draw up a requirement for an army cooperation and observation aircraft with its performance parameters. The requirement stipulated the use of the Argus As 10 or the Hirth HM 508 engine and placed emphasis on short field performance, maximum possible allround view for the two crew members, and a wide range of speed. It was intended that the resultant aircraft, which the Siebel Si 201 was also designed to compete for, would be evaluated in competition with the Fi 156.