The tactical data links will send operational information in text format direct to the cockpit, enhancing the crew's awareness of the surrounding situation and reducing the possibilities of friendly fire engagements.

The improved secure communications will allow pilots to talk securely to air controllers on the ground, the AWACS surveillance platform as wel as other combat aircraft on the same operation, thereby minimising the risk of hostile forces intercepting information.

Baroness Taylor, said:

"Tornados and Harriers are providing an outstanding job supporting our troops on the ground in Iraq and Afghanistan. This contract with BAE Systems will provide our Tornado and Harrier jets with state-of-the-art equipment that will significantly improve their ability to communicate with each other and assist operations on the ground."

The upgrades entail Secure Communications, Tactical Information Exchange Capability (TIEC) and the Paveway IV precision guided bomb (PGB) onto Tornado GR4 and a second secure radio channel and TIEC onto Harrier GR9.

The planned upgrades for Harrier will take place at RAF Cottesmore and the work for Tornado will take place at BAE Systems' site at Warton and integrated at RAF Marham.

The combined cost of the programmes, including through-life support, is £548M. The contract values signed with BAE Systems are worth £99M for Harrier CAP E and £253M for Tornado CUS(P) respectively.

BAE Systems is the prime contractor with the Tactical Information Exchange Capability made by General Dynamics UK based in Hastings; the Secure Communications Radio for the Tornado made by Ultra Electronics Ltd based in Middlesex; and the precision guided bomb Paveway IV made by Raytheon.