Amey replaces Skanska, which is currently managing and maintaining Gloucestershire’s 10,000 km highways network and delivering highway improvement schemes.

The average yearly spend is around £26m and the initial contract will run for five years giving it a value around £130m to the firm.

The county council also has an option to extend for a further 11 years making the deal worth as much as £450m.

Amey already works closely with Gloucester City Council providing street scene services for local residents such as refuse and recycling collections, street cleaning, and grounds maintenance.

Mel Ewell, Chief Executive for Amey, said: “I am delighted Amey has been announced preferred bidder by Gloucestershire County Council for this exciting new partnership.

“We are looking forward to further enhancing our services to the residents of Gloucestershire and will draw on our existing footprint in the local area along with our national highways experience to provide high quality, yet cost efficient services for the county.”

The contract award comes at the end of a successful year that has seen Amey pick up six major highways contracts with Liverpool City Council, Transport Scotland, the New South Wales state government agency in Australia, the Queensland Government Department in Australia and ASC 6 and ASC 8 with Highway Agency.

There will now be a four month mobilisation period to finalise contractual arrangements so that the new contract can start on the 1st April 2014.