The deal with the Ministry of Defence is aimed at ensuring the Warton-built Tornado's future as a frontline aircaft and is potentially worth in the region of £1.5bn over the initial 10 years of the programme.
Although much of the maintenance will be carried out by BAE workers at RAF Marham, the contract will also sustain around 100 jobs at Warton.
Fylde MP Michael Jack welcomed the announcement which he said was an indication that the MoD was now working more closely with BAE.
He said: "This is further welcome news for BAE and indicates the importance of the close working relationship between customer and manufacturer in ensuring full frontline capability of the Tornado can be maintained for a very long time in the future.
"I welcome the fact that it has got the ability to safeguard 100 jobs at Warton, and is symptomatic of the strengthening relationship between the MoD and BAE."
As part of the contract, known as ATTAC (Availability Transformation: Tornado Aircraft Contract), the RAF will still carry out day to day flight maintenance but BAE will be responsible for the more complex work.
The role of the Warton workers will be to develop new technology for the plane.
Steve Millward, managing director of Tornado at BAE, said: "Signature of ATTAC represents a major achievement for the joint BAE Systems / UK MOD team who have been working in a partnered way for several years.
"It will provide an effective and flexible through life service to the front line customer at significantly reduced cost."
The new way of working, described as "revolutionary", will also save the MoD an estimated £510m.
Air Commodore Simon Bollom, Tornado IPT leader, MOD, said: "The contract provides a benchmark fast jet service to the Royal Air Force by combining the best of logistic and engineering skills of the RAF and BAE Systems."