The Royal Navy’s Merlin helicopter could be in line for major upgrades under a project announced by Defence Procurement Minister Lord Bach.

The programme, called Merlin Capability Sustainment Plus, will build on the aircraft’s operational experience – including the conflict in Iraq – and technological advances since the helicopter was first developed.

An initial assessment phase, costing around £18 million, will examine the most cost-effective way to sustain Merlin’s capability across a broad range of roles, including anti-submarine and surface warfare, and also seek scope for broadening the versatility of Merlin, particularly in surface surveillance.

Lockheed Martin UK Ltd has been chosen as the preferred contractor on a two-year programme to assess possible upgrades to the Mk 1 machines.

Westland Helicopters Ltd will be a strategic sub-contractor in a partnership which is intended to fully exploit the Merlin’s capabilities for the next two or three decades.

Lord Bach said: “Merlin is a proven aircraft which has delivered a quantum leap in capability and is crucially important for all types of maritime operations.

“However, we need to start work now on ensuring that the full potential of this versatile and capable aircraft is realised and that it continues to meet our defence needs for decades to come.

“We believe bringing together the strengths of Lockheed martin as prime contractor with the world-class manufacturing skills of Westland as strategic sub-contractor is the best way to deliver this.”

A contract for the assessment phase will be placed later this month.

Merlins already serve with aircraft carriers and Type 23 frigates in the Royal Navy, and 44 of the aircraft have been delivered since it entered service in 1999. Apart from anti-submarine work, Merlin can also perform search and rescue, stores transfer and troop-carrying functions.