TANK manufacturer Vickers has been selected as the preferred bidder to build a new generation of tanks for the British Army.

The Vickers plant in Newcastle has been selected to construct 66 bridge laying and mine-clearing tanks as part of a £250m deal, a company spokeswoman said.

Talks will now be opened to discuss contract details after Vickers beat off bids from British engineers Alvis and Austrian company Obrum.

A company spokeswoman said all the vehicles would be manufactured at Newcastle and would enter service in 2005.

Vickers will build the Engineer Tank Systems which are to replace the Chieftain-based Armoured Bridgelayers and Royal Engineers vehicles currently in service.

The tanks are based on the Challenger, which is also produced by Vickers, and there will be two variants - Titan, a bridge laying vehicle and Trojan, a mine clearance vehicle.

Colin Clark, chief executive of Vickers Defence Systems, said: "Vickers will ensure the Royal Engineers receive the best possible equipment at the lowest price and in the shortest possible time."

Titan will be used to bridge gaps or natural obstacles while under direct fire by launching Vickers-built 26 metre and 13.5 metre long aluminium bridges.

The bridges take two minutes to construct and can also be used in disaster zones to replace damaged bridges.

Trojan will be used to support combat military vehicles and will clear obstacles such as minefields while under fire.

A spokesman for the Ministry of Defence said: "Vickers have been identified as offering the most cost-effective solution to the requirement for a new generation of engineering vehicles."

The work will begin in May 2001 and will secure jobs for 500 staff at the Scotswood Road plant.