The contract, won against competition from 28 companies across Europe, is believed to be one of the biggest single contracts of its kind in the industry.
LDV will supply Swindon borough council with 68 dual-fuel Convoy vans through local dealer Lex Commercials. The van maker launched its LPG range in March this year.
Tony Lewis, LDV executive director sales and marketing, said: “This is fantastic news for LDV and demonstrates further support for our alternative fuels strategy.”
Councillor Sue Bates, leader of Swindon council, said: “Vehicle emissions are a vital part of the future ecology of the world. We are leading by example by bringing cleaner air to Swindon.”
LDV plans to launch trials of electric vehicles in London in November.
The six month programme will feature two LDV Convoy vans in Winchmore Hill, London, and Grays, Essex.
The trial will assess the vans in typical operating cycles to try to provide representative performance figures. The company is currently investing £180m in its Birmingham plant, including £30m on a new paint shop.