BAE Systems has been awarded a £100million contract by the Ministry of Defence to upgrade the Harrier jump jet fighter.

The news came as a welcome boost for the company after it lost out in the race to build the next generation of re-fuelling tankers for the RAF.

The new contract builds on a £500million programme to extend the life of the Harrier which is the mainstay of Britain's aircraft carriers.

Thirty out of the 40 Harriers in service have had improved engines fitted and the first to complete the mid-life upgrade in November last year are back on HMS Invincible.

A BAE Systems spokesman said the latest upgrade programme would involve improvements to the avionics systems which control the Harrier in flight.

"This is an important contract for BAE Systems," he said. "While most of the work will be carried out at Farnborough, the contract will involve the jobs of around 30 people at Warton."