The contract calls for life-extension services for the HMS Galve and HMS Sundsvall with follow-up inspections after three years. It also includes the installation of a new combat system.
Work will be conducted at the Saab facility in Karlskrona and Jarfalla and is expected to be completed by 2020.
"The ships have good operational capabilities, high availability, long service life, and low operating costs," Saab Senior Vice President Gunnar Wieslander said.
"With a new, advanced combat system, the ships will be modernised to meet the customer's demands," Wieslander said.
First commissioned in 1989, the Goteborg-class corvette is a light patrol vessel designed for coastal surface warfare, anti-submarine operations, and limited air-defense. It is armed with light guns, torpedoes, anti-ship missiles and depth charges.
Out of four built, only the Galve and Sundsvall remain in service.
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