The government's Identity & Passport Service (IPS) has awarded an £18 million contract to Thales for the development of its national identity card scheme.

Under the four-year contract, the company will work together with IPS in the design and building of the technology that will deliver the National Identity Register and support the issue of ID cards.

IPS previously announced in May that a different firm, 3M-SPSL, had been appointed to manufacture and supply the cards for the roll-out to critical workers.

From November this year, compulsory ID cards are being introduced for foreign nationals seeking to reside in the UK and are set to be rolled out to employees in sensitive roles, such as certain airport workers, from late next year.

The general population is then scheduled to be enrolled on to the scheme from 2011.

According to IPS, the National Identity Register will hold personal biographical details separately from fingerprints and photographs to minimise the risk of identity fraud in the system.

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