BAE Systems is expected to make a last attempt to win the £1bn ($1.5bn) Scout vehicle programme contract, despite announcements that the deal would fall to General Dynamics (GD).
BAE told the UK Ministry of Defence (MoD) that it would revise the terms of its bid and move the work to Newcastle, a move that would cancel 400 redundancies and create 400 additional jobs, according to FT.com.
The new bid comes days before the MoD was expected to announce General Dynamics (GD) as the winner of the competition to build an initial batch of about 750 vehicles.
BAE's original bid planned to equip the Scout armoured vehicle in Sweden, and assemble turrets and manufacture the Warrior armoured vehicle at a new site in Donnington.
In the past year, BAE has announced the closure of three land-vehicle manufacturing plants, resulting in many job losses and doubts over the future of the UK's domestic armoured vehicle manufacturing capability.