
British defence firm BAE Systems has won the $35billion contract to build a new fleet of anti-submarine frigates for the Australian navy.

The federal Government announced on Friday the company's Type 26 Global Combat ship will be the design for the program, in what will be the largest peace-time warship project in Australian history.

The 150-metre ships will be built in a government owned Adelaide shipyard, ASC, and will be officially known as the Hunter class, with the navy to receive nine advanced guided missile frigates beginning in the late 2020s.

The 'submarine killers' - costing about $4billion each - will replace replace older frigates built in 1996, a defence source told The Australian. The British company beat bids from ­Spanish ship builder Navantia and Italian company, Fincantier.

British defence giant BAE Systems has won the $35billion contract to build a new fleet of anti-submarine frigates for the Australian navy. An artist's impression of one of the ships is pictured

Construction will begin in 2020 with the first ship expected to be delivered in 2027, as part of what the source described as 'the most significant warship project since World War II'.

The Turnbull government said the program will create 4,000 jobs across the country - with about 1,500 of those in Adelaide - and offer unprecedented opportunities to more than 500 small and large businesses across the supply chain.

The Hunter class 'will be one of the most capable warships in the world', the government said.

'The Hunter class will have the capability to conduct a variety of missions independently, or as part of a task group, with sufficient range and endurance to operate effectively throughout the region,' the government said in a statement.

The ships' advanced missile system is able to provide complete protection against all air threats. The missile can travel at speeds of over 1,200km/h with a range of more than 27km

'The frigates will also have the flexibility to support non-warfare roles such as humanitarian assistance and disaster relief.'

Finance Minister Mathias Cormann said the contract would deliver 'one of the world's most advanced anti-submarine frigates'.

'It will secure a sovereign naval shipbuilding industry here in Australia for decades to come,' he told Sky News.

British Foreign Minister Boris Johnson said the project was a sign of a strong UK-Australia relationship.

'Fantastic news that #Australia has chosen @BAESystemsplc Type 26 frigate for its new warship contract, worth up to PS20bn. Even further proof the UK-Australia relationship is stronger than ever!' he wrote.

The 'hunter killer' warships will replace the ageing Anzac-class frigates (pictured) which have been in circulation since 1996

British Prime Minister Theresa May hailed the announcement and said it was the 'perfect illustration' of the deals Brexit Britain will be striking with countries outside the EU.

'While this is an enormous boost for the UK economy, it will also cement our strategic partnership with one of our oldest and closest friends for decades to come,' she said.

British Defence Minister Guto Bebb added: 'BAE Systems' winning bid highlights the best of British shipbuilding design and our world-leading anti-submarine warfare technology.

The first ship is expected to be delivered in 2027 as part of what the source said was 'the most significant warship project since World War II'. The graph above shows the capabilities of the new fleet

TYPE 26 GLOBAL COMBAT SHIP: 'THE MOST CAPABLE WARSHIP IN THE WORLD' MISSILE SYSTEMS: The advanced Sea Ceptor weapon system is able to provide complete protection against all air threats. The missile can travel at speeds of over 1,200km/h with a range of more than 27km. MEDIUM CALIBRE GUN: A five-inch gun with a range of 35km is mounted on the bow of the warship. RADAR: A 3D surveillance radar offers anti-ship missile defence and long-range air search capabilities. LAUNCH SYSTEM: The MK41 Vertical Strike Launcher contains pre-loaded canisters capable of storing various types of missiles. PROPULSION AND HULL: An acoustically quiet hull with two electric motors, four high-speed diesel generators and a gas turbine are all optimised to reduce underwater noise. AVIATION: The flight deck can accommodate heavy lift helicopters while the hangar can house medium sized choppers. A secondary hangar can accommodate for a surveillance drone. COMBAT MANAGEMENT SYSTEM: This system can simutainously attack land targets, submarines and surface ships while protecting the fleet against aircradt, cruise missiles and ballistic missiles. MODULAR MISSION BAY: Multiple boats and un-manned vehicles can be deployed for both disaster and relief missions. Advertisement

'Australian forces have stood should-to-shoulder with our military for generations and this deal will build on our strength as allies as our two great Navies operate this cutting-edge frigate around the globe.'

The close allies are both part of the 'Five Eyes' security partnership - an intelligence sharing alliance between Britain, Australia, America, Canada and New Zealand.

The new frigates will be crucial to Australia's defences at a time where China is escalating its military presence in the region's oceans.

BAE had been shortlisted for the frigate program by the Turnbull government, along with rival companies Fincantieri, based in Italy, and Spain's Navantia.