Will my SIM card for iPhone 3gs work in the iPhone 5?

I have an on-going SIM contract and so don't want to buy the iPhone 5 contract- just the phone itself. So would the iPhone 3gs SIM work in the iPhone 5?

Yes, but it would have to be cut to nanoSIM size first.
Also the phone would either have to be unlocked or locked to your carrier in order to be able to work

The iPhone 3GS works with a mini-SIM, the iPhone 5 with a nano-SIM. You either cut the sim yourself (you can find instructions on google) or you simply go to your carrier and ask for a new nano-SIM (usually free of charge, depends on the carrier)

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