The new deal with L3 Harris Communications Systems for 1,300 new multi-mode radios (MMR) will provide both ground-to-ground and ground-to-air communications for deployed soldiers.
Technical advances and upgrades will allow the radios to work across a range of security classifications, with the first ones being delivered to the British Army before the end of the year, ahead of further deliveries in 2023, the MoD said.
The MoD is currently planning to spend £11.7bn over the next 10 years in order to update or replacing its digital systems to keep pace with potential adversaries.
It hopes the money will enable seamless sharing and exploitation of data in military operations across land, air, sea, space and cyber.
The contract will lead to the creation of 10 new jobs and the sustaining of 200 more at the L3 Harris HQ in Farnborough, Hampshire.
Defence procurement minister Alex Chalk said: "It's vital we equip our Armed Forces personnel with modern capabilities to maintain their operational effectiveness on an ever-changing battlefield.
"This contract boosts our interoperability with allies and is yet another example of British companies and employees supporting British defence."
The modern radios will replace legacy systems and will boost communication abilities for troops on land and in the air and increase the ease of launching operations with allies and partners
Colonel Elizabeth Mortimore said: "The arrival of the next generation of the multi-mode radio capability will offer significant enhancement to our Armed Forces across all three Services by delivering world-leading command and communications capability to the front line."
Keith Norton, vice president at L3Harris CS UK, said: "As lead user for this capability for Defence, the British Army has worked with Defence Digital to procure new MMR radios to add capability to deployed forces. These will enable land forces to easily communicate and interoperate with Nato and US allies as well providing a solution that can be easily tailored for each deployment."
Researchers at Grenoble Alpes University recently developed a device for quickly locating any object that is transmitting a radio signal including cell phones, signal jammers or tracking tags.
