BAE Systems has won two contracts to work on a £49 million project developing armoured vehicles for the British Army.
One - to design a lightweight, portable bridge for them to use - will be under-taken at BAE's site in Wolverhampton.
The work will begin immediately and is expected to last 24 months.
Although a spokesman for BAE said it was still too early to say if the group would need to expand the workforce, he confirmed the contract would be significant.
"This is a substantial piece of work for our Wolverhampton site," he said.
"It is our opportunity to prove to our client - the Government - that we our capable to take on the contract for this new technology."
The second contract won by BAE will be an 18-month project demonstrating technology for the chassis of the vehicles.
Both are part of the larger Future Rapid Effect System (FRES) project to develop new armoured vehicles for the Army.
The Army plans to replace several vehicle types for roles ranging from troop transport to mine clearing.
FRES is estimated to cost £49 billion over its 30-year lifespan, including the cost of maintaining the equipment.
No financial details of contracts were immediately available.
Defence electronics firm Thales UK - teamed with Boeing - and Lockheed Martin UK have also won technology demonstration contracts for the project.