FARNBOROUGH, England — A Leonardo-Airbus team has been downselected to equip the British military with the latest Mode 5 Identification Friend or Foe (IFF) capability, according to Mauro Moretti, the CEO of the Italian firm Leonardo-Finmeccanica.

The exact value of the deal has not been released yet but Moretti told reporters attending a company briefing on the opening day of the Farnborough air show on July 11 that it could be worth "hundreds of million of euros."

Leonardo-Finmeccanica is expected to formally announce its selection this week.

Company officials said beating the rival Raytheon/Thales team to a deal to introduce Mode 5 IFF across land, sea and air platforms was a "big win."

The two teams had previously been working on a one-year assessment phase for the British Ministry of Defence (MoD). It's the second time in quick succession Leonardo-Finmeccanica has beaten Raytheon and Thales to MoD selection.

The Leonardo-Airbus team has supplied IFF systems to the British previously, including Typhoon fighters. But their rivals are generally seen as the incumbent provider of equipment here.

Adoption of Mode 5 is part of a NATO-wide requirement to introduce a new generation of IFF systems over the next few years.