Honeywell plans to build its next generation of aircraft radios in Lawrence, a company spokesman said, as the company works to land a big share of a market that could climb as high as $300 million.

Honeywell announced Tuesday that it had signed an agreement with the Federal Aviation Administration to develop the new radio one that digitizes voice communications, boosts data speeds and allows four conversations to share space currently occupied by one.

Such radios will be mandated in U.S. airspace by 2009. Honeywell expects the FAA regulation to affect 6,000 aircraft, creating a demand for 12,000 replacement radios worth $300 million.

Honeywell’s version of the radios to be replaced already are made in Lawrence, leading to anticipation of continued work in the years ahead. Honeywell has about 220 employees working in its avionics plant at 2920 Haskell Ave.

“This is a contract to develop a replacement radio for the existing radio,” said Ron Crotty, a spokesman for Honeywell Aerospace in Redmond, Wash. “If it would take more employees or not is not known. It just depends on what the market is like at the time.”

A year ago, Honeywell announced plans to shift a general-aviation product line from Lawrence to Olathe, costing the plant about 115 jobs by summer. In November, the company blamed an “abrupt downturn” in aviation for a decision to lay off 40 workers in Lawrence.

The FAA agreement is fueling optimism for the company.

“We’re very happy to be able to participate in this new business,” Crotty said. “As the airlines replace their existing radios, that might create a bit of a peak demand for a while. Naturally, that would be a good thing.”

Honeywell’s new radio is expected to be certified in mid-2004, Crotty said. More than 4,500 of Honeywell’s existing analog radios, introduced in 1996, remain in service today.