Germany and Israel have signed the purchase agreement for the Arrow 3 air defence system, a spokesman for the Israeli Defence Ministry announced on Thursday.
This finalizes the $3.6 billion acquisition process.
The contract states Israel's intention to deliver the first battery of the missile defence system to the German Defence Ministry by the end of 2025.
The two countries reached the deal back in September, with defence ministers Boris Pistorius and Yoav Galant signing a letter of intent to this effect in Berlin.
At the time Pistorius said: "It is without exaggeration a historic day for both our nations." The Russian invasion of Ukraine amplified the importance of air defence, he said.
In September, Galant said both countries "made history today with two simple signatures." Almost 80 years after the Holocaust, "this is a moving moment for every Jew," he had said.
In November, the Israeli army successfully deployed the new missile defence system - developed jointly by the US and Israel - for the first time.
Israel's defence ministry said an object fired at Israel was intercepted in the Red Sea area. According to the IDF, it was a surface-to-surface missile.
