The companies will supply Combat Vehicle 90 (CV90) for the Czech Land Forces.
VOP CZ managing director Marek Špok said: "VOP CZ offers the highest level of technology, development and production capacity for this project so we are well positioned to fulfil the needs of the Czech Army.
"We hope the cooperation grows into a long-term relationship."
Its two versions include the CV9040 with a 40mm gun, and the CV9030 export variant with a 30mm gun.
The vehicle offers full nuclear, biological and chemical (NBC) protection, as well as a radar and a fire detection and extinguishing system.
Its steel hull can be strengthened to protect against 30mm armour-piercing fin-stabilised discarding sabot (APFSDS) rounds.
More than 1,200 CV90 vehicles are being used by seven nations, including Sweden, Norway, Switzerland, Finland, the Netherlands and Denmark.
BAE Systems Hägglunds president Tommy Gustafsson-Rask said: "The agreement with VOP CZ will create a strong team to support the Czech Armed Forces for many years ahead."
Image: BAE Systems and VOP CZ will supply CV90 IFV for the Czech Land Forces. Photo: courtesy of BAE Systems.