A £2.2 billion high-tech military design and development project could come to Sussex following a Ministry of Defence announcement.

The Canadian sister company of Hastings aircraft technology firm Computing Devices has become one of the front runners to create a new battlefield radio system for the Army, Navy and RAF.

The firm began competing to create the radio after the Government threw out the Bowman consortium, which was chosen to produce a new radio in 1997 but has since fallen behind schedule.

Danny Milligan, integrated project team leader for avionics at Computing Devices, said: "There's no doubt elements would be manufactured and even designed here."

The firm's Iris system is already used by the Canadian army. In April this year, the MoD said it was studying the Computing Devices option.

The contract will provide a massive amount of work.

The MoD wants to replace the 25-year-old Clansman radio system which was criticised after the Kosovo conflict.

Last week, Computing Devices announced 150 new jobs as part of a £5 million project to make military technology available to private business.

The firm currently employs 500 people at Hastings.

However, the MoD's decision was a blow for Burgess Hill technology firm CAE Electronics, which had been chosen to provide training for the ditched Bowman system.