This is a very positive decision by the UK Government

John Rose Rolls-Royce

The £10bn ($15.6bn) deal will benefit both US and UK companies.

The government said that it had selected the short take-off version of the warplane.

The US defence contractor Lockheed Martin is behind the F-35 Joint Strike Fighter, which is the biggest warplane project in history.

Defence procurement minister Lord Bach said the announcement was "very good news" for British industry because the planes would be built in part by Rolls-Royce, BAE Systems and Smiths Group.

'Significant opportunities'

Rolls-Royce said on Monday that it expected to earn $3 billion making short take-off and vertical-landing technology for the US and British warplanes.

The company said the 150 aircraft bought by Britain would bring total British and US orders of the warplanes to 750.

"This is a very positive decision by the UK government which opens up significant opportunities for Rolls-Royce and its many suppliers," Rolls-Royce Chief Executive John Rose said in a statement.

The F-35 will replace the Royal Navy's Harrier Jump Jets.