Staff at BAE Systems are working on the navy's two new type of frigates – called the Future Surface Combatants.

And despite the recession it has just signed a £3.4m contract to create designs for the Ministry of Defence.

Workers hope the MoD will back them and go on to sign a deal to deliver 18 ships from 2020.

Brian Johnson, project director for the frigate programme at BAE, said: 'This contract is the starting gun for a ship that will be at the heart of the navy until 2050.

'It is a very exciting time to be working, and we're hopeful of success in the new year.'

A team based at BAE sites in Bristol, Scotland and Portsmouth have come up with two types of new frigate, called the C1 and C2.

The first is bigger than the current frigates and protects aircraft carrier groups, as well as having a 'mission dock' below the flight deck for the rapid launch of fast boats.

The second frigate would be more general purpose, carrying out the navy's patrol roles and other duties around the world.

Mr Johnson said: 'Subject to MoD approval at later stages, we've got an outline plan that would see the first ship launched in 2016, and then one ship a year enter service from 2020 or 2021.

'They would be expected to have a 25-year lifespan, so would be in service until 2050.'

Building the ships with foreign export in mind, dozens of Portsmouth workers could be involved in building the 10 C1s and eight C2s.

For that to happen, though, BAE needs the MoD to invest in the face of pressure from a cost-cutting strategic defence review.

Mr Johnson said: 'We are focused on delivering the best value for money, so we've worked on designs that would allow us to install new items on the Type 23s and transfer them over when the FSC's came in.

'Beyond the aircraft carriers this is the main project for Portsmouth, so there's a wish to get cracking.'

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