Thales has received a $343m contract from MTA New York City Transit (NYCT), US, to upgrade the Flushing Line for seven years.
The US-based company will incorporate its communications-based train control (CBTC) technology into the ten-mile Flushing Line.
The CBTC technology is intended to allow automatic operation of trains between stations and better operating flexibility and system safety.
Other upgrades, including the addition of new rolling stock, are scheduled to be completed by 2014, according to Thales.
The urban rail is also expected to be fitted with non-proprietary, free-space, wireless radio communication between the train and wayside equipment.
The Flushing Line, which runs from midtown Manhattan to Main Street in Queens, covers 21 stations with 46 eleven-car trains.
The line carries over 350,000 commuters per day, which totals to 115 million passengers a year.