Israel has signed an agreement with the US to develop Arrow II ballistic missiles that can shoot down missiles at higher altitude.
The Israeli Defense Ministry said that the upgraded Arrow III would allow Israel to deal with the threat of long-range ballistic missiles, according to Reuters.
The system will be capable of shooting down weapons of mass destruction outside the atmosphere and will be a integral part of Israel’s multi-tier air defences against Iran.
Jointly produced by Israel Aerospace Industries and Boeing, the development of the Arrow has cost nearly $1bn since its inception in 1988.
In 2009, the Israeli Air Force said that an Arrow III was in production and would take over four years to complete, depending on what resources were made available for the project.