The submarine, called ‘Agamemnon’, will be the sixth of seven nuclear-powered attack submarines designed and manufactured at the firm’s Barrow-in-Furness site.
The MOD said that the new contract guarantees a better deal for the UK taxpayer and for the Armed Forces.
The first three Astute class submarines - HMS Astute, HMS Ambush and HMS Artful - are currently in service with the Royal Navy, while 'Audacious' (number four (below)), 'Anson' (number five), Agamemnon, and the yet to be named boat number seven are in various stages of construction at the Barrow site.
Will Blamey, managing director of BAE Systems Submarines, said: “Securing the contract for the sixth Astute class submarine is a significant milestone for BAE Systems and the result of many years of hard work by our highly skilled workforce.
“The Astute class submarines are amongst the most highly capable and technologically advanced in the world and we’re immensely proud to build them for the Royal Navy.”
Defence Secretary Sir Michael Fallon added: “This latest investment means we are well on our way to completing our fleet of Astute submarines. These are the most advanced submarines ever operated by the Royal Navy and are already providing unprecedented levels of stealth and attack capability across the world.
“Backed by a rising defence budget and a £178 billion equipment plan, Barrow will remain the hub of our submarine build programmes providing high skilled jobs for years to come.”
Image credits: MOD/Crown Copyright