Geoff Hoon has signalled that Britain is unlikely to enter any large-scale conflict in future unless it is operating alongside US forces.

The defence secretary said Europe should mirror the US in moving away from heavy defence equipment to new smart technology.

"The issue is not whether the US decides to develop a unilateral or multilateral approach over the long term" he said.

"Whether it finds itself in that position or not will depend on the role played, and on the persuasiveness, and ultimately the capabilities of its allies."

The Ministry of Defence yesterday announced that four firms have secured a £4 billion contract to replace its outdated IT systems.