The government says the technology will help make the courts run more efficiently.

The contract means updated computer systems and equipment will be provided to around 500 magistrates' courts and offices in England and Wales.

The Lord Chancellor's Department has awarded a Private Finance Initiative (PFI) contract named Libra to ICL - one of Britain's largest computer companies - in partnership with Unisys.

A minister in the department, Geoff Hoon MP, said: "This underlines the government's commitment to investing in new technology in courts.

"This contract will help the service to improve the service offered to all court users and to run more efficiently."

'Coherent service'

The contract will run until 2009 with the initial design and build of the complex software required to support the system expected to take two to three years.

ICL will provide IT support in the preparation of cases, scheduling of court hearings, results of hearings in court, fine accounting and enforcement, magistrates' rotas and training, bulk printing and mailing and licensing matters.

Paul Boateng MP, Minister of State for the Home Office, said: "I very much welcome this significant step towards integrated information systems, which ties in with the government's determination to have a coherent criminal justice service."

The cost of the contract, £183m based on current workload, will be met through off-setting the costs of running and replacing the existing IT systems and cost benefits arising from changes to working practices which the improved systems will provide.