High-paid jobs are expected to be created in Gwent after the Ministry of Defence chose a consortium involving a local firm as the intended preferred bidder for a £1 billion contract.

Contract electrical manufacturers Axiom of Newbridge Technology Park is one of seven firms constituting the favoured bid to provide Armoured Vehicles Training (AVTS).

The contract is expected to generate 60 jobs across the UK.

If successful, the Landmark Training Consortia will deliver live simulated training to the British Armed Forces for the next 30 years at bases in UK and Germany.

It is thought using simulators will to save the armed forces around £400m over the next few years and lessen the impact on the environment as it will increasingly bring troops on gunnery and driving courses off the roads and ranges.

The system will simulate 14 vehicle types, including Challenger 2 tanks and Warrior Infantry Fighting Vehicles.

A final decision will be made once negotiations are finalised between the consortium and the MoD.

The news is a welcome boost to the Gwent economy after the failure of Northrop Grumman to land a £800m contract with the MoD to supply an advanced military communications system.

The contract was instead given to international company Thales Defence.

Northrop Grumman vowed to set up a base in the Oakdale Business Park had their bid been successful.

Islwyn MP Don Touhig, who played a crucial role in setting up a meeting between Axiom and Westland, another firm in the consortium, said: "The prospects of a jobs and investment spin-off from the MoD contract is testament to the high-quality skills and dedication of the Axiom workforce.

"I am very pleased that Axiom will have a significant part to play in this world-class training service.

"This shows that in the Valleys of South Wales we can compete with the best and have a workforce second to none."