BAE had been considering a second option of a new £200m single-site manufacturing facility at Scotstoun which would have meant closing the Govan yard.

Last year the company lodged planning applications for both proposals but indicated that it preferred the single-site option.

The Govan yard is currently being used to build sections of the second of the Royal Navy’s new aircraft carriers.

The new investment is to prepare for the Type 26 warship, being designed to replace the Royal Navy’s frigates.

A BAE spokesman said: “Following an assessment of potential facilities options, we have decided to retain and invest in both of our sites in Glasgow.

“We will work closely with our trade unions as we prepare the detailed designs to improve and expand our manufacturing facilities, which will mark the most significant investment in the Glasgow shipyards in decades.”

He added: “Together with investments in new technologies, cutting-edge processes and new ways of working, improved infrastructure will play a key role in transforming the way we design and build complex warships.

“This will enable us to create a modern, safe and inspiring workplace for our employees, whilst ensuring we deliver equipment to the highest quality at the lowest possible cost so we can compete effectively for future UK and international orders.”