Germany is to supply the Israeli Navy with four missile boats in a new arms deal worth 900m euros (£470m).
The German government will finance a third of the deal as part of its ongoing commitment to Israel’s security.
The IDF has been looking to buy new warships to modernise its navy and improve its ability to defend its offshore gas fields discovered in recent years.
Over the past two decades, Israel has bought its advanced combat vessels from Germany. Those have included six “Dolphin”-class submarines, four of which are already operational. Two others are due to be supplied over the next three years. According to foreign sources, the Dolphin submarines are capable of launching nuclear missiles.
Germany has paid over half of the costs of the submarines and Israel was expecting similar aid for the missile boats. However, personal tension between Chancellor Angela Merkel and Prime Minister Benjamin Netanyahu over Israel’s settlement policy caused long delays in the talks over the deal, as well as the reduced discount.