A state-of-the art radar system able to track an object the size of a snooker ball more than 12 miles (20km) away is to be built on the Isle of Wight.
The £100m-contract has been awarded to BAE Systems Insyte, which has a plant in Cowes, the Ministry of Defence said.
The Artisan radar system will also be installed on some other Royal Navy vessels as well as the new carriers HMS Queen Elizabeth and Prince of Wales.
The two huge warships will enter service in 2014 and 2016 respectively.
The radar contract is expected to sustain around 200 jobs, including around 80 at the Cowes facility, the MoD said.
"It will allow our ships to detect, track and aid the identification of a range of threats from the air and surface in difficult conditions"
Rear Adm Amjad Hussain, from MoD Defence Equipment and Support, said: "The Artisan radar is a sophisticated world-class system which will significantly improve the flow and quality of information to commanders compared with existing technology.
"It will allow our ships to detect, track and aid the identification of a range of threats from the air and surface in difficult conditions.
"The new radar will replace existing systems on our Type 23 frigates, landing ships HMS Albion and HMS Bulwark and the assault helicopter carrier HMS Ocean - as well as on our two new aircraft carriers HMS Queen Elizabeth and HMS Prince of Wales.
"This is a prime example of the type of hi-tech equipment that we are investing in to improve the ability of our commanders to operate in the 21st Century."
Fighter jets
The news follows the MoD signing a £4bn deal to build the two new aircraft carriers in the UK - a move expected to provide 10,000 jobs at its peak.
The work will be carried out in Portsmouth, Barrow-in-Furness, Glasgow and Rosyth.
The project was first announced in 2003, but then put off because of MoD spending plans.
The 65,000-tonne carriers are expected to be able to carry 36 fighter jets as well as four early warning aircraft.
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