According to Polish media, the value of the contract could be up to 15.5 billion euros ($18.3 billion).
PGZ "accepted the task of integrating and creating short-range anti-aircraft missile launchers for use by the Polish army" as part of Poland's Narew programme, Defence Minister Mariusz Blaszczak said in a statement.
The foreign partner in the project has not yet been chosen.
PGZ already works closely with Britain's MBDA missile systems.
Jim Price, MBDA Vice President Europe, told AFP the company was "committed to fully meeting Poland's ambitions to have a potent and entirely Polish-made Narew system".
"Thanks to our close co-operation with PGZ, and with the support of the UK government, we are offering unprecedented technology transfer to ensure this missile is built in Poland, by Poles for Poland's sovereign use," he said.
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