The UK government on Monday said it had awarded British defence group BAE Systems a contract to build nuclear-powered submarines.

The Ministry of Defence said in a statement that BAE had been awarded a contract worth 1.5 billion pounds ($2.0 billion, 1.7 billion euros) for delivery of the seventh Astute class submarine.

It had additionally won a 900-million pound contract for the next phase of the Dreadnought submarine programme.

"This multi-billion-pound investment in our nuclear submarines shows our unwavering commitment to keeping the UK safe and secure from intensifying threats," Defence Secretary Gavin Williamson said in the statement.

"HMS Agincourt will complete the Royal Navy's seven-strong fleet of hunter-killer attack subs, the most powerful to ever enter British service, whilst our nuclear deterrent is the ultimate defence against the most extreme dangers we could possibly face."