The contractor will be working in partnership with London Underground itself. Total value of the work to be delivered by the partnership is £220m, of which around half will be Balfour Beatty's share.
Works include the replacement of ballasted track, points and crossings, including all ancillary signalling and drainage works on the Tube network. A start is expected in spring 2011. There is an option to extend the contract for a further two years after the initial five-year period.
Balfour Beatty chief executive Ian Tyler said: "We are delighted to be continuing our relationship with London Underground. We are very pleased to be part of such a crucial project, working in partnership with London Underground to deliver a world-class transport system for London."