The contract, which is expected to be worth up to £210m, will see Kier in charge of all planned and responsive highways maintenance work as well as major projects.
The deal will last seven years, with the option of a further three years.
Kier will take over from rival Ringway Infrastructure Services next April, when the contractor’s six-year deal with the council comes to an end.
Other responsibilities for Kier under the contract will include street lighting, flooding and drainage, maintenance of bridges and structures, and winter maintenance.
The decision from the council comes after nearly a year-long procurement process which focused on driving efficiencies through the life of the contract.
The deal marks Kier’s continued strong performance in the roads maintenance market, with the contractor involved in maintenance work across five of Highways England’s asset support and maintenance regional contracts, as well as a number of long-term roads maintenance deals.
Strong performances in its highways division contributed to improved financial performance in the company’s full-year results, published last month.
The firm posted a pre-tax profit of £26m for the year ending 30 June 2017, up from the £35m loss for the previous 12 months.
Shropshire Council cabinet member for highways and transport Steve Davenport said: “Our highways and transport team have been working hard for over a year to ensure that the procurement process and the development of the overall contract for these key services was carried out thoroughly and effectively.
“There are some mobilisation matters to finalise over the forthcoming months and we will be working jointly with Kier to finalise all the necessary details before they start work in April next year.”