Plans for a new aerospace technology centre in Yeovil have been approved by Somerset County Council.
The proposals to build the iAero centre are aimed at 'cementing Somerset's position as the centre of the country's aerospace industry'.
But the news comes just weeks after the jobs of dozens of workers were left in doubt after another aerospace company in Yeovil lost a major contract, leaving its survival in question.
Somerset County Council say the £10 million project could bring up to 175 jobs Yeovil.
The council has committed to spending £1 million on the project with other contributions coming from industry sources and European Union funding.
Under the plans Yeovil would be one of two key technology centres in thre South West, specialising in rotorcraft with a proposed centre in Bristol leading on fixed wing aircraft.
The council described the decision as 'a welcome boost following the recent announcement that the GKN facility in Yeovil faces possible closure'.
230 workers were sent home two weeks ago after the company was informed it was no longer needed to build Royal Navy helicopter parts for another Yeovil-based company Leonardo.
Councillor David Hall, Cabinet member for Business, Inward Investment and Policy, said:
John Ponsonby, Managing Director of Leonardo Helicopters on whose airfield the new centre will be located said: