BAE Systems earns 'anti-insurgent' missile system deal for the US military.
The Naval Air Systems Command said it intends to negotiate with the US subsidiary of the British firm to develop the Advanced Precision Kill Weapon System II (APKWS II).
The project expands integration into the arsenal used on aircraft, including the A-10 'Warthog'. The existing semi-active laser-guided APKWS system is designed as a cheaper alternative to the Hellfire missile, at around a third of the cost - $30,000 (£17,000).
The Hellfire has become renowned for use on Predator and Reaper drones and was originally designed to target armored vehicles.
The APKWS is designed to destroy lightly armored and "soft" vehicles, moving or stationary, in urban locations. It can be armed with high explosives or flechettes - steel darts - in the warhead.
Trials were carried out early this year firing the missile from the A-10 and the new missiles hit within inches of their target.
It is based on a 2.75 in (70mm) rocket with guidance 'canard' lead fins, and the new version has improved laser control for accurate targeting.