Former Paralympic athlete John McFall could become the first person with a physical disability to live and work in space, with blast-off scheduled for as soon as next year.
Mr McFall, who had a leg amputated above the knee following a motorcycling accident at the age of 19, would be sent to the world's first commercial space station, Haven-1, which is due to launch in 2027.
The government's UK Space Agency will now work with Haven-1's owners, US company Vast, to secure sponsorships to fund the mission.
McFall is part of the European Space Agency's Astronaut Reserve and last year became the first person with a physical disability to be medically cleared for long duration space flight.
"Signing this agreement with Vast is incredibly exciting," he said.
"If we can make this mission happen, it won't just be a milestone for human spaceflight, it will send a powerful message about what people with disabilities are capable of, and that there should be no limit to what you can achieve - on Earth or in space."
John McFall won bronze in the 100m (T42) at the 2008 Beijing Paralympics and went on to become an NHS surgeon, specialising in trauma and orthopaedics.
During his mission, he will study how prosthetics perform in microgravity, how people move and balance in space, and how the human body adapts to conditions in orbit.
It could help doctors understand conditions like osteoporosis and muscle wasting that affect many disabled people, and lead to the development of lighter, more adaptable prosthetic limbs.
Tim Peake, who was the last British person to go to space, in 2015, said McFall "is an inspiration - not just to the space community, but to everyone who has ever been told there are limits to what they can achieve.
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"This agreement is a landmark moment for inclusive human spaceflight, and I hope it brings us one step closer to seeing John in space. Space has always pushed the boundaries of what's possible, and John's mission would do exactly that."
The memorandum of understanding signed by the government and Vast also establishes a broader framework for UK-US collaboration, covering scientific research and technology development in low Earth orbit.
Blair McDougall, Minister for Economic Transformation, said: "By partnering with companies like Vast, we are backing British innovation, supporting high-growth sectors from life sciences to advanced manufacturing, and ensuring the UK is at the forefront of the emerging global space economy."
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