Defence Secretary Michael Fallon has announced the UK will deploy 1,000 troops and four RAF Typhoon jets to help bolster Nato's response in the Baltics.
The fighter jets will be used for air policing in the Baltic states and will operate alongside Norwegian aircraft between May and August 2015.
Typhoons will work to secure Nato's airspace over Latvia, Estonia and Lithuania, which do not have their own air defence jets.
"Nato's credibility in the face of the security challenges we face depends on everyone playing their part to implement the decisions taken at Wales last year," Fallon said.
"The Readiness Action Plan demonstrates the Alliance's commitment to reinforce our collective defence but strong words must be backed up with firm action.
"That is why I am delighted to announce that the UK will lead the VJTF [Very High Readiness Joint Task Force] in 2017 and contribute to the Baltic Air Policing mission again in order to put the plan into practice."
The move comes as Nato prepares to increase its military presence in response to continued fighting in Ukraine.
Defence chiefs met in Brussels last week to discuss the region and boosting its forces there.