Sweden has decided to buy two new submarines worth $932 million from Saab Kockums, Radio Sweden reported on Tuesday.
The A26 submarines are to be delivered by 2022.
"This is the biggest single decision when it comes to economic investments that we will make during this parliament", Defence Minister Peter Hultqvist told TT.
The decision, to be formally made by the cabinet on Thursday, is to "ensure Swedish submarine capability past 2030", the minister added.
"These are the next generation of submarine. These submarines will be very hi-tech", minister said.