BAE Systems has won a contract worth £127m over four years to design a 'next generation' warship for the Royal Navy.Defence Secretary Bob Ainsworth said the company had been asked to come up with a design for a new Type 26 Combat ship.The group has also been told to start building another Astute class submarine in Barrow-in-Furness, the fifth of seven planned vessels.It will also begin procurement for the sixth which will cost the Ministry of Defence over £300m.An MOD spokesperson called the new warship "the workhorse of the navy". It will replace the Type 22 and 23s and be equipped to take part in anti-submarine warfare and provide support for land operations, surveillance, intelligence, counter-terrorism and anti-piracy operations.Ainsworth said BAE "will examine whole life costs, consider the potential for international export, develop tailored logistic support arrangements and produce a full ship specification for consideration prior the main investment decision".