The UK Ministry of Defence (MoD) has awarded BAE Systems a contract worth £1.2bn for Audacious, the fourth submarine in the Astute class.
The full contract covers the design, build, test and commissioning programme. First steel was cut in 2007 and Audacious is at an advanced stage of construction at BAE Systems' site in Barrow-in-Furness, Cumbria where it employs 5,000 people.
BAE Submarines managing director John Hudson said the contract represented "a very significant milestone for the company as it provides increased stability for the remainder of the programme".
The MoD also confirmed that a further £1.5bn has been committed to the Astute programme for the remaining three submarines in the class.
Audacious will include a number of design changes to the first three submarines in the Astute class. Most relate to the submarine's combat system. The submarine, the fourth of a planned class of seven submarines, is nearly half way through its build programme.
Powered by a sophisticated nuclear propulsion system, the nuclear reactor in the 97m-long submarines never needs refuelling. The sonar system has the processing power of 2,000 laptops and can track ships 3,000 miles away. Armed with both Tomahawk land attack missiles and Spearfish torpedoes, its missiles have a target range of 1,200 miles with accuracy measured in metres.