Drones manufactured by Lockheed Martin will replace the UK army's existing Mini Uncrewed Aerial Systems, such as Desert Hawk 3, the government said.
"The 159 rotary-wing Indago 4 devices and 105 fixed-wing Stalker VXE30 drones, which are both capable of locating and identifying targets far from the operator, are due to be operational by the end of 2024," the statement read.
The new drones are designed to provide small military units with immediate intelligence, surveillance, target acquisition and reconnaissance capability, according to the statement.
Minister for Defense Procurement Alex Chalk lauded the contract as "another fantastic example of British industry supporting UK defence technology."