A boost is thought to be on its way for a North-East tank builder.

The future of Vickers Defence Systems, at Scotswood, Newcastle, has been overshadowed by sell-off rumours since its acquisition by Rolls-Royce last year.

A key to its future health is the capture of an order for Challenger 2 tanks from the Greek government, which could be worth up to £2.4bn. But most of the 400 battle tanks would be made in Greece.

An insider in the MoD's Defence Procurement Agency has been quoted as saying: "We know that we are close to crossing the finishing post."

Details of competing bids published by the Greek government showed Vickers' package to be ten per cent cheaper than its main rival, from a German company.

Industry experts believe the Greek contract - which has enjoyed top-level support from the British Government - could be a long-awaited fillip capable of transforming the business.

In May the MoD opened the way for a £1.5bn contract to supply the British Army with 1,000 personnel carriers.

Vickers, which employs a 650-strong North-East workforce, is in the running.