The order for 20 Hawk 128 jets, with an option for up to 24 more, is worth up to 800 million pounds (1.2 billion euros, 1.3 billion dollars), Britain's Ministry of Defence said.

The ministry had reportedly been under strong Treasury pressure to save money by putting the contract out to international tender, a move which would have imperiled BAE's factory in Brough, Yorkshire, northern England.

In May, the company was forced to issue provisional redundancy notices to 470 workers at the plant in anticipation of losing the order, but these had now been withdrawn, BAE said, professing itself "delighted".

Defence Secretary Geoff Hoon said the "current expectation" was that the military would buy all 44 jets.

"Hawk 128 is an excellent aircraft. It is the right choice for training the pilots of our future advanced fighter jets and the right decision for our defence industrial capability," he said in a statement.

The aircraft, due to enter service in 2008, will train future Royal Air Force and Royal Navy pilots for the Tornado, Harrier and Typhoon -- the British name for the Eurofighter -- and later the Joint Strike Fighter, the Ministry of Defence said.

Earlier models of the Hawk are currently used for this role, but there had been speculation BAE could lose out this time to a foreign model, such as the Italian Aermacchi M346 trainer, identified by some analysts as a cheaper option.

The decision has been mired in controversy and reportedly prompted a bout of squabbling within the British government.

According to Wednesday's Financial Times, Hoon made an unprecedented request for the Department of Trade and Industry to financially back BAE in the deal, only to be rebuffed.

Keith Hailes, the top union official at the Brough factory, said workers had been through an "emotional roller-coaster" in recent weeks because of continuing speculation over the contract.

BAE chief executive Mike Turner said the firm recognised it had been "an important and difficult decision for the government in the context of spending priorities."

"We are delighted by this decision," he said.

BAE's shares rose 5.0 percent to 148 pence in the short time between the announcement and the close of London trade.

WAR.WIRE