The UK has fought off challenges from the US, France, and Germany to secure a £10billion deal with Norway, in Britain's biggest-ever warship export deal.
The deal will see a combined fleet of 13 anti-submarine warfare frigates, eight of which will be British and the other five Norwegian.
Some 4,000 jobs will be supported from the deal, including more than 2,000 in Scotland, the Government said.
The Type 26 frigates are also used by Australia and Canada, with the aim of the purchase to strengthen ties between the Nato allies.
Some 432 businesses will be supported with the deal in the Government's Plan for Change.
Following the announcement, Sir Keir Starmer said: "This £10billion deal is what our Plan for Change is about - creating jobs, driving growth and protecting national security for working people.
"This Government has forged new partnerships across the world to deliver for people at home, and the export of our world-leading Type 26 frigates to Norway will do exactly that, supporting well-paid jobs up and down the United Kingdom, from apprentices to engineers.
"This success is testament to the thousands of people across the country who are not just delivering this next generation capabilities for our Armed Forces but also national security for the UK, our Norwegian partners and Nato for years to come."
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The deal will support 2,000 jobs in Scotland
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The decision comes ahead of a new UK-Norway defence deal, aimed at strengthening ties between the two countries.
Norwegian Prime Minister Jonas Støre also said: "Norway and the United Kingdom are close allies, with common interests and strong bilateral ties. I am confident that the strategic partnership with the UK for purchasing, developing and operating frigates is the right decision."
Norway, which shares a border with Russia, has been ramping up defence spending after Moscow's invasion of Ukraine and President Donald Trump's demand that Nato allies must boost their own military strength.
A key mission for the Type 26s will be to monitor Russian submarines, whose base is on the Kola Peninsula, an area in the Arctic bordering Norway.
A Downing Street spokeswoman said: "The Prime Minister spoke to the Prime Minister of Norway, Jonas Gahr Støre last night. Prime Minister Støre informed the Prime Minister of the UK's successful bid for Norway's future frigate programme.
"The leaders agreed the decision was an important and historic moment for European security. It also underlined the close partnership between the UK and Norway, which would endure for decades to come, the Prime Minister added.
"The cutting-edge Type 26 warship would be among the most advanced frigates ever built and would deliver unparalleled interoperability for Norwegian and British forces, the Prime Minister said.
"The leaders also discussed the situation in Ukraine. The Prime Minister thanked Prime Minister Støre for Norway's continued to support and significant contributions that continued to support Ukraine's fight. Both agreed it was vital the country was able to defend itself, as Russia continued its barbaric and illegal attacks. They looked forward to speaking again soon."
Sir Keir welcomed the deal with Norway
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Reacting to the deal, Defence Secretary John Healey also said: "For over 75 years, Britain and Norway have stood together on Nato's northern and north-eastern frontiers, keeping the UK and Europe safe. This historic defence deal deepens our strategic partnership.
"With Norway, we will train, operate, deter, and - if necessary - fight together. Our navies will work as one, leading the way in Nato, with this deal putting more world-class warships in the North Atlantic to hunt Russian submarines, protect our critical infrastructure, and keep both our nations secure.
"This deal confirms Britain's defence industry as world-leading."
Mr Healey added that this deal will "support thousands of high-skilled jobs for the next 15 years and beyond".
The Type 26 features multiple weapons, advanced sensors, and cutting-edge communications, with a design that can counter any emerging threats.
Chief Executive of BAE Systems Charles Woodburn welcomed the announcement.
He said: "The Norwegian Government's decision reflects its confidence in British industry's ability to deliver a superior anti-submarine warfare platform, together with systems and equipment, that will support its future maritime security and reinforce its position within NATO.
"We look forward to playing our part in further strengthening the strategic partnership between the UK and Norway, as we work together with Norwegian industry to deliver this important capability to the Royal Norwegian Navy."