The Army is to get a £1bn upgrade to its Warrior fighting vehicles, the prime minister and defence secretary have said.
David Cameron and Philip Hammond announced the decision during a visit to Lockheed Martin UK, who have been awarded the contract, in Bedford.
The Warrior Infantry Fighting Vehicle has been in service with the British Army since 1989 and has been deployed in theatres including Kuwait, Bosnia, Kosovo, Iraq, and Afghanistan.
The upgrade is designed to extend the life of the vehicles to 2040 and beyond.
Hammond said the upgrade would "give commanders and their soldiers greater flexibility and firepower".
"Not only is this fantastic news for the Army, it also represents a great boost to British industry - sustaining jobs, skills and capability within the UK's armoured vehicle sector," he said.
In a statement issued on Tuesday defence minister Peter Luff said the upgrade included an improved turret and a new "stabilised" 40mm cannon, as well as enhanced electronics.
"The Warrior Capability Sustainment Programme will provide a major upgrade to the vehicles and extend their service life to beyond 2040," he said.