BAE Systems says a new contract worth up to £140m to look after the Royal Navy's new aircraft carriers will safeguard jobs in Portsmouth for years to come.
The government has extended its service agreement to include HMS Queen Elizabeth and HMS Prince of Wales.
A BAE Systems spokesman said: 'The Ministry of Defence has amended its Maritime Support Delivery Framework contract with BAE Systems to include the Queen Elizabeth Class, extending the arrangement to cover all classes of ships home-ported at Portsmouth Naval Base.
'The amendment is worth £69m and runs until March 2019, with an option to extend it to March 2020 at an additional value of £68.5m.
'The agreement forms part of the new £1billion Common Support Model (CSM), which was announced by Defence Secretary Sir Michael Fallon on Tuesday. The CSM will provide a framework for comprehensive support across the entire Royal Navy fleet of warships for decades to come in one new overarching arrangement.'
David Mitchard, Managing Director, Maritime Services, BAE Systems, said: 'We are the leader in complex warship support, and to be awarded a contract to support the QE Class aircraft carriers safeguards these skills in Portsmouth and the region for years to come.
'The Common Support Model represents a collaborative way of working, placing industry shoulder to shoulder with the Royal Navy and the Ministry of Defence, and we are looking forward to implementing it across all classes of ships we support at Portsmouth.'