Gibraltar Squadron is set to receive two boats to replace its current Fast Patrol Craft.
A £9.9m six-year contract has been signed with Merseyside-based Marine Specialised Technology (MST) to build the new vessels.
Both boats will be used to patrol HMNB Gibraltar and British Gibraltar Territorial Waters (BGTW).
Jeremy Quin, Minister for Defence Procurement, said: "These new vessels will enable the Royal Navy to maintain the security of British Gibraltar Territorial Waters and protect British, NATO and Allied ships transiting through the region."
The construction of the two boats will begin in July 2020 and will take approximately 18 months.
The remainder of the contract will provide four years of local in-service support.
Mark Milson, Project Manager for Defence Equipment and Support Boats Team, said the boats will provide the Gibraltar Squadron with a "modern, fast and effective capability" for fulfilling their duties.
"There has been a British Armed Forces presence in Gibraltar for more than 100 years and these boats will ensure we maintain an important capability to the Royal Navy and our Armed Forces, as well as playing a pivotal role in patrolling our coastline, protecting domestic waters and supporting maritime interests," he said.
The two new boats will replace the Gibraltar Squadron Fast Patrol Craft, HMS Pursuer and HMS Dasher, who only recently took over from HMS Sabre and HMS Scimitar.
Cover image: Gibraltar Patrol Boat Squadron includes HMS Scimitar, HMS Sabre and various RHIB vessels and the squadron are based within Her Majesty's Naval Base Gibraltar (Picture: MOD).