Defense Secretary Des Browne announced Tuesday that the joint venture, to be formed by BAE Systems and VT Group, is a move to construct two new aircraft carriers that are bigger and more powerful than any other surface warship in the Royal Navy fleet. Browne says that the Ministry of Defense is ready to go ahead with the contract signatures, the ministry reported.

"The two aircraft carriers will provide our front-line forces with the modern, world-class capabilities they will need over the coming decades," Browne said in a statement.

"They will support peacekeeping and conflict prevention as well as our strategic operational priorities. This is an important day for the project, and I am delighted that we are moving closer to signing the contracts for the manufacture of the carriers."

The carriers will be constructed at four shipyards around the United Kingdom, with the first ship expected to enter service in 2014 and the second in 2016. Officials say the new aircraft carriers will be named HMS Queen Elizabeth and HMS Prince of Wales.