Sweden's Defence Minister Peter Hultqvist has officially announced the government's intention to authorise the Swedish Navy to procure two, next-generation A26 submarines from Saab.
In a statement released by the defence minister's office on 19 March, Hultqvist said that the total investment for two submarines will amount to Skr8.2bn ($945m).
The procurement of the A26 submarines will ensure Sweden's underwater capacity beyond 2030.
Hultqvist added: "Underwater capacity is a central part of Sweden's defence in peace time, as well as during emergencies and war."
The A26 order is part of a letter of intent (LoI) signed by Saab and The Swedish Defence Material Administration (FMV) in June 2014.
The LOI related to the Swedish Armed Forces's underwater capability for the period between 2015 and 2024 and included support, development, design and production of submarines and other underwater systems.
The submarines are expected to be delivered by 2022.
Saab stated that it has not yet received any orders for production of the new submarine, but anticipated that discussions for the A26 order will begin soon.
The order coincides with reports that Sweden launched a secret submarine hunt off of Stockholm coast earlier this year, after a possible submarine conning tower was reported in Swedish waters.