The ministry says it will work with BAE over four years to consider design proposals for the new Type 26 combat ship, which is expected to have multiple roles including anti-submarine warfare and counter-piracy tasks.

The warship is due to enter service in 2020.

Defense Secretary Bob Ainsworth also announced Thursday a commitment to proceed with building the Astute class of submarines, which the ministry describes as the largest and most advanced attack submarines ever ordered for the Navy.