David Cameron
Britain's Prime Minister David Cameron said deal will create 1,300 jobs in the UK Reuters

The UK is set to seal a deal for 600 new armoured vehicles ahead of this week's Nato summit.

British Prime Minister David Cameron will sign the contract with General Dynamics for 589 Scout Specialist Vehicles, before heading to Wales for the two day summit.

The deal marks the British government's biggest single order in more than 30 years and is expected to create 1,300 jobs.

"With the second largest defence budget in Nato ... we are ensuring Britain's national security, staying at the forefront of the global race and providing leadership within Nato," Cameron said in a statement.

"These new vehicles are testament to the world-class engineering skills in south Wales and across the UK, helping to create the Army's first fully digitalised armoured vehicles," he said.

"Not only will they be crucial in helping to keep Britain safe, they will also underpin nearly 1,300 jobs across the UK and showcase the strength of the UK's highly skilled defence sector."

Delivery of the Scouts is expected to begin in 2017.