A MULTI-MILLION pound deal to save 140 jobs at a threatened flagship factory has been agreed.

A rescue package will be announced today to secure the future of the Filtronic factory at Newton Aycliffe, in the heart of Prime Minister Tony Blair's Sedgefield constituency.

Defence giant BAe Systems and American firm M/A-com Inc are to provide a massive cash injection which will safeguard the future of the beleaguered plant - which has been making losses running at more than £1m a month.

Staff at the high-tech plant were facing an uncertain future as mounting losses and high debt levels sent the company's shares plummeting by 90 per cent.

The company remained tight-lipped about the deal last night ahead of a Stock Exchange announcement later today, but there appeared little doubt that management and staff would be breathing a huge sigh of relief when the details emerge.

Professor David Rhodes, executive chairman of Filtronic, said: "The intricacies of the deals will be made more clear in the announcement tomorrow, but I can confirm that a rescue package has been agreed.

"We have been working hard to secure these deals and things have gone extremely well, and talks so far have been very productive."

The firm produces equipment for mobile phone transmitter base stations, and aerials for mobile phones.

It was hailed as the saviour of the ex-Fujitsu plant when it bought the plant from the Japanese company for £10.5m in 1999.

But since the buyout, the firm has suffered from a slowdown in the growth of the mobile market, and the Newton Aycliffe plant has been one of the worst hit.

It has been in talks with BAe for months, and it is thought the company will use Filtronic's wireless technology in future defence-related projects.

The Prime Minister said: "If this happens, and the signs are clearly hopeful, this is very good news for the company and everyone who works there."