The UK Ministry of Defence has officially awarded the contract to produce a prototype laser weapon, the BBC reported.
The aim is to see whether "directed energy" technology could benefit the armed forces, and is to culminate in a demonstration of the system in 2019.
The contract was picked up by a consortium of European defence firms.
The prototype will be assessed on how it picks up and tracks targets at different distances and in varied weather conditions over land and water.
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He said that this could "provide a more effective response to the emerging threats that could be faced by UK armed forces".
The MoD has been finalising the agreement with the consortium, called UK Dragonfire, for several months, but it has now formally announced them as the winning contractor.
A spokesperson for the MoD said that the demonstrator was not being developed to counter any specific threat, but to assess whether such weaponry could be delivered as a capability for the armed forces.
The US military has been experimenting with high energy lasers for decades. But, until recently, technical hurdles had prevented them from being used on the frontline.
However, the US Navy fielded a laser weapon system called 'Laws' for testing on the USS Ponce during a deployment to the Arabian Gulf starting in 2014.
It hit targets aboard a small boat which was directed to speed towards the navy ship and also shot a small drone out of the sky.
If the demonstration is successful, the first laser weapons could come into service in the mid-2020s.
The UK Dragonfire consortium comprises the companies MBDA, Qinetiq, Leonardo-Finmeccanica GKN, Arke, BAE Systems and Marshall ADG, the report said.