Thales/Balfour Beatty Rail will be responsible for lines in Jutland, while Alstom's contract will cover the eastern part of the network.
Banedanmark says both bids are within the budget "by a decent margin," and that competition was fierce.
"We received twelve very strong bids, six each in the west and east," says Mr Jesper Hansen CEO of Banedanmark. "Ultimately we chose to enter final negotiations with the two vendors who submitted the most economically advantageous overall bids." Banedanmark expects to sign both contracts this month.
A separate contract to equip the Copenhagen S-Train network with communications-based train control was awarded to Siemens last year.