The agreement, with Texas-based Axiom Space, would see the team spend up to two weeks in orbit to carry out scientific research, demonstrate new technologies and participate in education and outreach activities.

British astronaut Tim Peake has said he will come out of retirement to lead the mission after last flying to the International Space Station (ISS) in 2015 with the European Space Agency.

“There’s a lot happening in the space sector right now, and I think for the UK to be at the forefront of this new era of exploring commercial opportunities is a fantastic thing,” he said on BBC Radio 4’s Today programme.

“There are several hurdles to overcome: the financial model needs to be secured, crew selection and training, and Nasa needs to approve the mission and they need to identify a slot if it is to go to the ISS,” he added.

“So it’s early days and there are several steps to go through, but it is fantastic that we have started the ball rolling with...