The total value of the work to be delivered by the partnership is £220m, of which around half will be Balfour Beatty’s share.
The works will include the replacement of ballasted track, points and crossings, including all ancillary signalling and drainage works on the Tube network.
Ian Tyler, chief executive, Balfour Beatty, said: “We are delighted to be continuing our relationship with London Underground.
“We are very pleased to be part of such a crucial project, working in partnership with London Underground to deliver a world-class transport system for London.”
Works are expected to start in spring 2011. There is an option to extend the contract for a further two years after the initial five-year period.