Research projects will be overseen by the Technology Strategy Board and include: developing lighter fans that reduce fuel consumption, simulation technology for virtual engineering, and new, affordable high temperature alloys to improve fuel efficiency.

Rolls-Royce will partner with the Universities of Birmingham; Bristol; Cambridge; Imperial College London; Loughborough; Nottingham; Oxford; Southampton; Surrey; Swansea.

Lord Mandelson, UK’s business secretary also welcomed the Rolls-Royce commitment to build a new aero-engine disc facility in Washington, Sunderland.

Mr Mandelson, said: ”The knowledge, skills and high-end production the UK offers give us huge opportunities to benefit as global demand for low carbon products grows. These new projects will help our world class aerospace industry to meet that growing low carbon demand.

”Rolls-Royce represents some of the best of British advanced manufacturing. Its plans to site a new factory in the North East underline the company’s commitment to British manufacturing excellence.”

Ric Parker, director of research and technology at Rolls-Royce, said: ”This is a good example of government, industry and academia coming together to expand Britain’s capabilities in high value added manufacturing.

“The innovative, high value-added work that the Siloet program is addressing will influence future aero-engine architecture and help to further reduce the impact of aviation on the environment.”

The disc facility is one of four facilities Rolls-Royce will build in the UK, which is expected to secure or create 800 jobs in manufacturing program over the long term.