The government has committed £360 million to develop a new British Jet Trainer System for the Red Arrows.
The current Hawk T1 fleet is being phased out, with the team currently flying reduced numbers to manage airframe aging.
Contenders for the new jets include the Boeing-Saab T-7A, Leonardo M-346, and the Korean T-50.
The investment is part of a broader £15 billion national military funding increase spanning four years.