The British government said on Tuesday it had awarded Boeing (BA.N) a five-year contract worth 420 million pounds ($644.91 million) to provide in-service support to its fleet of Chinook military helicopters.

"The Chinook support contract represents significant value for money for what is a very capable and versatile support helicopter, protecting UK interests at home and abroad," British Prime Minister David Cameron said in a statement.

"This will sustain 450 jobs and save the taxpayer over 150 million pounds," he said, adding that BAE Systems (BAES.L) and Magma Structures had been chosen as the preferred bidders to occupy the Portsmouth ship hall facilities in southern England.