Although obsolete as a bomber, it remained in service in support roles and in France's overseas colonies at the start of World War II.

Designed by Louis Coroller, it was intended as a four-seat aircraft capable of performing duties such as bomber, transport and long-range reconnaissance.

The prototype had twin fins and rudders, and was powered by two 515 kW (690 hp) Hispano-Suiza 12Xbrs V-12 engines in streamlined nacelles, which were connected to the fuselage by stub wings.

During development, the original tailplane was replaced by a single fin and rudder, and in this form, the type was re-designated the Potez 540 and delivered to the Armee de I'Air on 25 November 1934.

By September 1939 and the beginning of World War II, they had been largely transferred to the French colonies in North Africa, where they continued to function in transport and paratrooper service.