"The order has a total value of 512 million euros," Thales and Siemens said in a statement on Monday.
The consortium will modernise the control, signalling and safety equipment on the 331 kilometres section of the high-speed line between Olmedo and Ourense in Northern Spain.
"Trains will reach 350km/h speed by 2018 and it will take two hours to connect the two cities," Thales said.
The consortium is 55 per cent owned by Thales with the remaining 45 per cent held by Siemens.
A train derailment in July 2013 on one another section of his high-speed line near Santiago de Compostela had caused 79 deaths.