We present a one-equation subgrid scale model that evolves the turbulence energy corresponding to unresolved velocity fluctuations in large eddy simulations. The model is derived in the context of the Germano consistent decomposition of the hydrodynamical equations. The eddy-viscosity closure for the rate of energy transfer from resolved toward subgrid scales is localised by means of a dynamical procedure for the computation of the closure parameter. Therefore, the subgrid scale model applies to arbitrary flow geometry and evolution. For the treatment of microscopic viscous dissipation a semi-statistical approach is used, and the gradient-diffusion hypothesis is adopted for turbulent transport. A priori tests of the localised eddy-viscosity closure and the gradient-diffusion closure are made by analysing data from direct numerical simulations. As an a posteriori testing case, the large eddy simulation of thermonuclear combustion in forced isotropic turbulence is discussed. We intend the formulation of the subgrid scale model in this paper as a basis for more advanced applications in numerical simulations of complex astrophysical phenomena involving turbulence.