To satisfy the needs of air forces with limited financial resources, the Avro Company re-designed the Model 621 Tutor to make it suitable not only for initial flying training but also for bombing, photographic, gunnery, wireless, night flying, navigation or instrument training as well. Although the machine remained a two seater, a third cockpit or gunner's cockpit could be provide aft of the second cockpit. The RCAF placed a follow-on order for the 626 after experience with the 621 model. These aircraft could be equipped with twin metal skis, enclosed cockpits and "Arctic" cowlings with controllable shutters.

The 626 was flown with the Tutor by the Auxiliary army co-operation squadrons. Early in World War II. No. 3 Squadron was equipped with the 626.