In this paper we present a model of turning operations with state-dependent distributed time delay. We apply the theory of regenerative machine tool chatter and describe the dynamics of the tool-workpiece system during cutting by delay-differential equations. We model the cutting-force as the resultant of a force system distributed along the rake face of the tool, which results in a short distributed delay in the governing equation superimposed on the large regenerative delay. According to the literature on stress distribution along the rake face, the length of the chip-tool interface, where the distributed cutting-force system is acting, is function of the chip thickness, which depends on the vibrations of the tool-workpiece system due to the regenerative effect. Therefore, the additional short delay is state-dependent. It is shown that involving statedependent delay in the model does not affect linear stability properties, but does affect the nonlinear dynamics of the cutting process. Namely, the sense of the Hopf bifurcation along the stability boundaries may turn from sub-to supercritical at certain spindle speed regions.