SpaceX has been selected from very few other options to take the International Space Station out of its orbit and crash it into the sea at the end of its life during the early 2030s.
Elon Musk's California-based SpaceX is set to build a spacecraft capable of pushing the 430-tonne ageing space station from its position and directing it to an area of the Pacific Ocean known as Point Nemo.
Point Nemo is approximately 2,500km from land and is considered a safe place for the space platform to splash down. Its name was derived from the famous captain in Jules Verne's book 20,000 Leagues Under the Sea.
It is understood the contract is up to $843m which is around £668m for SpaceX who will create a sort of tug to bring down the station when it reaches the end of its working life. The details of the designs have not yet been released by either NASA or SpaceX.
Ken Bowersox, NASA's director of space operations said: "Selecting a US De-orbit Vehicle for the International Space Station (ISS) will help NASA and its international partners ensure a safe and responsible transition in low Earth orbit at the end of station operations. This decision also supports NASA's plans for future commercial destinations and allows for the continued use of space near Earth."