A £140m contract to build the world’s most advanced precision bomb could create up to 200 jobs in Scotland.

Fife-based Raytheon Systems Limited (RSL) has signed a deal with the Ministry of Defence to build the Paveway IV bomb.

The contract will create 200 jobs at RSL’s Glenrothes plant and at sub-contractor bases in Basingstoke, Portsmouth and Brighton.

Paveway IV will have the latest Global Positioning System technology for use by the RAF in all weather conditions.