Boris Johnson has arrived at the Bombardier factory in Derby to inspect the progress on trains being built for London's Crossrail project.
The contract with Transport for London is worth £1.3bn.
Bombardier is delivering 65 nine-car trains for the east-west rail link in the capital.
The project is due to open in 2018.
Celebrations are taking place today to mark 175 years of the railways and rail industry in DerbyRead the full story ›
Derby-based train manufacturer has officially signed the £1 billion contract to provide 65 new trains for the new Crossrail line in London.
The new deal has secured the future of around 760 jobs, and means the creation of 244 new positions at the new depot.
Transport Secretary Patrick McLoughlin said welcomed the official sealing of the deal.
Derby has a deserved reputation for quality train building and I am delighted Bombardier can write the latest chapter in this success story.
The deal is a win for the employees of Bombardier and British manufacturing, supporting 760 new jobs and 80 apprenticeships.
For commuters it will mean new state-of-the-art trains that deliver quicker and more comfortable journeys and boost capacity across the capital.
Derby college say they are training enough new engineers to fill all the new jobs created by Bombardier's 1 billion pound contract.
The contract secures the future of 760 jobs and will create 244 new positions.
Derby college provides tailor made courses for jobs with Bombardier and Nottinghamshire and Leicestershire Chamber of Commerce are also campaigning for the HS2 Academy to be based in Derby.
The University of Derby has welcomed the 1 billion pound contract awarded to local employer Bombardier.
The trains for London's Crossrail project will be made at the company's plant in Litchurch Lane.
Angela Dean, Head of the School of Engineering and Technology, says the university is ready to supply 'work-ready engineers' for the project.
This is tremendous news for the manufacturing industry in Derby and confirms the city as one of the premier centres for the world’s rail industry.
Our graduates from areas such as mechanical, electrical, electronic and manufacturing and production engineering are a great talent pool for Bombardier and will support the supply chain to train work-ready engineers ready to take on this exciting challenge.”
Over 90% of students from the University's School of Engineering and Technology have moved into work or further study within six months.
George Osborne has said Derby-based Bombardier's contract to supply Crossrail trains is "great news for British manufacturing, and a real boost for the British economy".
The Chancellor claimed the £1 billion deal was also a "vote of confidence" in the Government's economic plan.
An MP has celebrated the awarding of a £1 billion Crossrail contract to Derby-based manufacturer Bombardier, claiming it has saved hundreds of jobs by ensuring the firm did not pull out of the UK.
Derby North MP Chris Williamson told ITV News Central the deal will enable Bombardier to bid for new contracts - whereas if they had lost the contract, it may have meant the firm pulling out of Derby altogether.
He said it was a fitting tribute to 175 years of trainmaking in the city.
Workers at the Bombardier plant in Derby have spoken of their relief and delight at today's announcement the firm has been awarded a lucrative £1 billion government contract.
The company warded off competition from overseas to seal the deal to supply 65 trains to the Crossrail project in London.
Manufacturing work on the company's existing contract to supply Tube trains was continuing this morning at the plant in Old Oak Common.
The new deal has secured the future of around 760 jobs, and means the creation of 244 new positions at the site.
Union bosses have welcomed today's announcement that a £1 billion supply contract for London's new Crossrail line will go to Derby-based Bombardier.
The deal will seal the future of more than 1,000 hundreds of jobs and apprenticeships, including 244 new positions.
Unions today said the decision came as a "great relief" after the manufacturer controversially missed out on a similar deal to supply trains for the capital's Thameslink project in 2011.
Rail, Maritime and Transport (RMT) union general secretary Bob Crow called the announcement a "fantastic result".
This is a fantastic and deserved result… which will go a long way to saving the future of train-building in the nation that gave railways to the world.
Unite national officer Julia Long echoed his sentiments.
This is great news for the workforce at Bombardier and for Derby.
After the disastrous handling of the Thameslink contract this news must come as a massive relief for the skilled men and women at Bombardier.
Bombardier will continue to build trains, valuable jobs will be secured and young people will have a future in manufacturing through apprenticeships.
This decision is a tribute to the skills and dedication of the Derbyshire workforce.
A Derby MP has today welcomed news that the city's Bombardier factory has been awarded a £1 billion contract with London's Crossrail project.
Chris Williamson, who represents Derby North, said the deal was "great news" for both the company and for Derby's wider economy.
The fantastic campaign by Derby people and trade unions to secure train manufacturing in Derby, after losing out on the £1.4bn Thameslink contract in 2011, has been vindicated.
Today’s announcement is just the fillip Bombardier needed to secure its medium-term future and it’s great news for Derby’s wider economy too.