Jerusalem: Israel’s Defence Ministry has secured its largest-ever defence deal, selling a sophisticated missile defence system to Germany for $US3.5 billion ($5.4 billion) in a move that could have repercussions for the war in Ukraine.

Although Israel has long had close economic and military links with western European countries, the deal, which the United States approved, could draw the attention of Russia. Israel has maintained working relations with Russia throughout the war in Ukraine and has repeatedly rebuffed requests to sell arms to Kyiv for fear of antagonising Moscow.

Israeli Prime Minister Benjamin Netanyahu, right, and then US ambassador to Israel David Friedman watch a video showing the launch of the Arrow 3 hypersonic anti-ballistic missile in Jerusalem in 2019. Credit: AP/File

Germany will buy the advanced system, coined Arrow 3, which is designed to intercept long-range ballistic missiles armed with nuclear or other warheads. Israel sought approval for the deal from the US State Department because the system was jointly developed by the two countries through the Israel Aerospace Industries and Boeing. Israeli defence officials said the system would extend Germany’s defence capability while strengthening the defence relationship between Israel and the US.

Israeli Prime Minister Benjamin Netanyahu called the deal “historic”.