General Dynamics Land Systems said the contract, received through the U.S. Army, calls for the delivery to Egypt of 125 tank kits, the 11th production increment under the bilateral arrangement.
The value of the contract to General Dynamics is $395 million.
General Dynamics said company work on components for the ready-to-assemble kits will be performed in Anniston, Ala.; Tallahassee, Fla.; Sterling Heights, Mich.; Lima, Ohio; and Scranton, Pa.
The Egypt Co-production Program started as a result of the 1979 Camp David Accords between Egypt and Israel, when the United States -- the broker of the peace agreement -- pledged military assistance to Egypt.
Egypt, as part of its effort to modernize its tank force, asked Washington for assistance in building an armored vehicle assembly plant and later entered into a co-production deal.
The 125 tanks that will result from the General Dynamics kits will bring the total number of tanks built by Egypt under the agreement to 1,130.
General Dynamics has been providing tank kits to Egypt since 1992.