Israel announced on Thursday that the United States had given it the green light it to conclude a "historic" military deal with Germany worth $3.5 billion.

In the largest military agreement in Israel's history, Germany will buy the "Arrow 3" anti-missile system – jointly developed between Israel Aerospace Industry and the American aerospace giant Boeing to shoot down ballistic missiles above the atmosphere. 

According to Israel's Defense Ministry, Germany will make an initial payment of $600 million, and the deal will be signed by the end of the year, subject to approval from both parliaments. 

Israel's Defense Minister Yoav Gallant described the deal as an "important step that will contribute to strengthening Israel's strength and economy."

"It is especially important for every Jew that Germany possesses Israeli defense capabilities," he added in a statement

The missile defense system was first deployed in 2017 at an Israeli air base to protext from possible attacks from Iran and Syria.

Berlin expects the defense system to be delivered in the last quarter of 2025.

The German government led a campaign to bolster NATO's air defenses in Europe in the aftermath of Russia's invasion of Ukraine, urging its allies to buy defense systems. So far, 12 countries in Europe have signed on to the program.