Chinese firm Huawei is to be given a limited role in the UK's 5G network.
In a statement, the Government said it will be banning “high-risk vendors” from sensitive parts of the UK’s 5G networks, including access to “sensitive geographic locations”, such as military bases and nuclear sites.
It will also be capped at 35% of the network's “periphery” infrastructure.
There have been fears that the Chinese state could put pressure on Huawei to share information on the UK's 5G communications.
Huawei has always denied it would pose any security risk.
The decision was made by a meeting of the National Security Council on Tuesday that was chaired by the Prime Minister.
In a statement, Huawei vice president Victor Zhang said the company was "reassured" by the confirmation that they could continue working on the 5G roll-out.
"This evidence-based decision will result in a more advanced, more secure and more cost-effective telecoms infrastructure," Mr Zhang said.
The debate over Huawei's involvement in the new network has caused trans-Atlantic tensions.
The White House previously urged Boris Johnson to not use the company.
Senior members of US President Donald Trump’s administration even warned British sovereignty would be put at risk by allowing the firm to play a role in the UK’s 5G infrastructure.
On Monday, the US Secretary of State Mike Pompeo called the meeting of the National Security Council as "momentous".
The US has previously urged allies in the Five Eyes intelligence community - made up of the US, UK, Canada, Australia and New Zealand - not to use Huawei.
Earlier this week, Mr Johnson said he would not "jeopardise" the UK's security relationship with the US.
MP Tom Tugendhat, chairman of the Commons Foreign Affairs Select Committee in the last parliament, warned the UK would be “allowing the fox into the hen house” if it gave Huawei 5G access.
On Sunday, Mr Pompeo retweeted a comment by Mr Tugenhadt that "real costs will come later if we get this wrong and allow Huawei to run 5G".
"British MP Tom Tugendhat gets it right: ‘The truth is that only nations able to protect their data will be sovereign’," Mr Pompeo said.
5G network connection is expected to bring download speeds 10 times faster than what 4G currently offers.
Cover Image: Huawei will play a limited role in the UK's Government (Picture: PA).