The Department for Transport and Transport for London have awarded Montreal-based firm Bombardier a £1bn contract to supply and maintain 65 new trains for the capital's new Crossrail project.
According to a TfL statement, the deal includes Bombardier building a new depot for Crossrail, as part of the largest infrastructure project in Europe, which will in turn create over 1,000 jobs and around 100 apprenticeships in the UK.
"The manufacture of these new trains will not only revolutionise rail travel in London, they will deliver jobs and economic growth in their birthplace in Derby and across the UK," said London mayor Boris Johnson.
"With a firm on board to deliver a fleet of 21st century trains and the tunnelling more than halfway complete, we're on track to deliver a truly world-class railway for the capital."
Bombardier confirmed that the new trains will be manufactured and assembled at their plant in Derby and will support 760 UK manufacturing jobs plus 80 apprenticeships.
Construction of the maintenance depot at Old Oak Common will see 244 jobs, plus 16 apprenticeships and when the depot is fully operational, it will support 80 jobs to maintain the new fleet of trains.
TfL and Bombardier confirmed that an estimated 74% of contract spend will remain in the UK economy.
"Crossrail is already generating jobs in London and the UK," said Sir Peter Hendy, London's transport commissioner.
"When it opens it will continue to provide jobs and the growth it will bring will boost the whole economy."
London's population is set to grow to around 10 million by 2030, from 8.4 million today and the Crossrail project is aimed at easing the pressure off the capital's crowded underground tube network.
London's £18bn (€22bn, $24.5bn) Crossrail project is due to open in 2018 is aimed to connect Heathrow airport to the west of London to the county of Essex in the east through 42 km (26 miles) of new tunnels.