A fuel valve for injecting fuel into the combustion chamber of a large two stroke diesel engine, said fuel valve comprising: a fuel valve housing, an elongated nozzle with a central bore and a closed front, a high pressure fuel inlet port for connection to a source of high pressure fuel, a conduit connecting the high pressure fuel inlet port to the nozzle, a resiliently biased and axially movable valve needle cooperating with a valve seat and configured to control the flow of fuel from the high pressure fuel inlet port to the nozzle, whereby lift of the axially movable valve needle allows flow from the high pressure fuel inlet port to the nozzle, a chamber above the valve seat connected to said conduit to receive pressurized fuel, a plurality of nozzle holes distributed axially and radially over the nozzle, a cut-off shaft moving in unison with the valve needle and received to be axially displaceable in the central bore in the nozzle for opening and closing the nozzle holes, said plurality of nozzle holes being distributed axially such that the number of nozzle holes that are open increases with increased lift of the valve needle and the cut-off shaft so that the amount of lift of the axially movable valve needle determines how many nozzle holes are open and thereby the flow area, and characterized by an electro-hydraulic linear actuator (43,46,53,70;120) operably connected to said axially movable valve needle for providing lift of the axially movable valve needle, wherein the electro-hydraulic linear actuator controls the magnitude of the lift of the axially movable valve needle in response to a control signal, and by the electro-hydraulic linear actuator (43,46,53,70;120) comprising a linear hydraulic actuator that is operably connected to the valve needle, an electrically operated actuator (85, 141) acting on a proportional hydraulic valve (53,57,58,59,140), and said proportional hydraulic valve controlling the flow to and from said linear hydraulic actuator (43,46,53,70; 122,124,126,130). a fuel valve housing, an elongated nozzle with a central bore and a closed front, a high pressure fuel inlet port for connection to a source of high pressure fuel, a conduit connecting the high pressure fuel inlet port to the nozzle, a resiliently biased and axially movable valve needle cooperating with a valve seat and configured to control the flow of fuel from the high pressure fuel inlet port to the nozzle, whereby lift of the axially movable valve needle allows flow from the high pressure fuel inlet port to the nozzle, a chamber above the valve seat connected to said conduit to receive pressurized fuel, a plurality of nozzle holes distributed axially and radially over the nozzle, a cut-off shaft moving in unison with the valve needle and received to be axially displaceable in the central bore in the nozzle for opening and closing the nozzle holes, said plurality of nozzle holes being distributed axially such that the number of nozzle holes that are open increases with increased lift of the valve needle and the cut-off shaft so that the amount of lift of the axially movable valve needle determines how many nozzle holes are open and thereby the flow area, and characterized by an electro-hydraulic linear actuator (43,46,53,70;120) operably connected to said axially movable valve needle for providing lift of the axially movable valve needle, wherein the electro-hydraulic linear actuator controls the magnitude of the lift of the axially movable valve needle in response to a control signal, and by the electro-hydraulic linear actuator (43,46,53,70;120) comprising a linear hydraulic actuator that is operably connected to the valve needle, an electrically operated actuator (85, 141) acting on a proportional hydraulic valve (53,57,58,59,140), and said proportional hydraulic valve controlling the flow to and from said linear hydraulic actuator (43,46,53,70; 122,124,126,130).