The deals could add up to �1.64bn for Smiths in coming years

The London-based group said its aerospace division had won a deal worth more than �873m ($1.6bn) to supply landing gear systems for the aircraft.

The contract comes on top of an agreement in February to supply the 7E7 jet's "backbone" or Common Core System.

Total revenues on the deals are expected to near �1.64bn ($3bn) during the aircraft's lifetime, Smiths added.

"This news reflects Smiths' long-term commitment to investment in research and development and reconfirms our tier-one supplier status with Boeing," Smiths Chief executive Keith Butler Wheelhouse said.

The news helped propel Smiths shares to seven month highs of 725.5p during the day. They later closed 14p up at 714p.

Customer hopes

The 7E7 is the US firm Boeing's latest attempt to fight off the challenge from European rival Airbus in the intercontinental jetliner market. which delivered more commercial airlines than Boeing for the first time last year.

Although smaller than the group's 777 and 747 jet, the new aircraft will be able to carry 200 to 250 passengers on flights of up to 8,300 nautical miles.

Meanwhile, Boeing added it was in discussions with potential customers for the new airline.

Only Japan's All Nippon Airways and Air New Zealand have announced orders for the 7E7 so far.

But 7E7 Program Senior Vice President Mike Bair said the groups were in talks with more than 30 carriers which could lead to around 500 orders by the time test flights of the plane begin in 2007.

"There's no doubt we'll be bringing forward a European launch customer this year," added Marlin Dailey, Boeing Commercial Airplanes vice president for sales in Europe said.

He also revealed he was "absolutely convinced" that the airline would be seen flying in British airline colours but declined to name any potential buyers from the UK market.