By Adria Calatayud

U.K. mobile operator O2 has chosen Ericsson AB to upgrade its networks and extend its 5G coverage, the Swedish telecommunication-equipment maker said Wednesday.

Ericsson said it has been selected to deploy O2's 5G radio access network in the west of the U.K., upgrading the existing 2G, 3G and 4G sites as part of a substantial network modernization program.

O2--owned by Spain's Telefonica SA but in the process of merging with Liberty Global PLC's Virgin Media--launched its 5G commercial network in the U.K. in October. The extended partnership includes cities like Manchester, Liverpool and Cardiff, Ericsson said.

Both companies are also developing an innovation cluster as part of a trial platform to evaluate future mobile architecture, technology and systems, Ericsson said.

The Wall Street Journal reported last week that new U.S. restrictions imposed on Huawei Technologies Co. had prompted British officials to consider steering telecom carriers away from equipment made by the Chinese company.

Write to Adria Calatayud at adria.calatayud@dowjones.com