Announced at the Royal International Air Tattoo, the investment will see the Typhoon being fitted with European Common Radar System (ECRS) Mk 2 radar.
The system is designed to enable the aircraft to simultaneously detect, identify and track various targets on land and in the air.
The Typhoons will also be upgraded with the latest mission computers, cockpit interfaces, improved navigation systems and signal jamming technology.
The work will ensure that the aircraft can incorporate additional capabilities and weapons later in the decade to counter emerging threats until 2040 and beyond.
Once equipped, the ECRS Mk 2 radar will transform the Typhoon’s control of the air and provide additional electronic warfare capabilities.
UK Defence Procurement minister Jeremy Quin said: “It’s vital the UK remains at forefront of military capabilities to be able to deter and defend.
“These technological enhancements will maintain cutting-edge capabilities of Eurofighter Typhoon and help underpin development path towards future combat air system.”
Delivery of ECRS Mk2 into the service is expected by the end of 2030.
Negotiated by the Defence Equipment and Support (DE&S), the contract will sustain more than 1,300 jobs at Leonardo UK’s sites in Edinburgh, Luton and Lincoln, as well as at BAE Systems’ sites in Warton and Samlesbury, Kent, Lancashire, Meggitt in Stevenage, and II–VI in County Durham.