(Reuters) - Britain's defense company BAE Systems on Tuesday said it had won additional funding up to $575 million from the U.S. Army to begin production of its new armored vehicles that would replace the Vietnam War-era M113 fleet of personnel carriers.

The new vehicles, called the Armored Multi-Purpose Vehicle (AMPV), are 'more survivable' with all-terrain mobility capabilities, BAE said.

Total funding for the initial production of the new vehicles, including previously awarded funds to support production planning, stands at $873 million, the defense contractor said.

"(The fresh award) brings soldiers one step closer to deploying this critical capability for completing their missions and coming home safely," said Bill Sheehy, AMPV program director for BAE Systems' combat vehicles business.

(Reporting by Ankit Ajmera in Bengaluru; Editing by Shinjini Ganguli)