Germany on Thursday agreed to purchase the Israeli-made Arrow 3 hypersonic missile system, which will play a significant role in defending Europe against aerial attack.

At a news conference with his Israeli counterpart Yoav Gallant, German Defense Minister Boris Pistorius described the signing of the agreement as a "historic day" for both nations.

The sale, which is estimated to be worth $3.5 billion (3.3 billion euros), is the largest ever for Israel's defence sector.

According to Pistorius, the Arrow 3 system would "make German air defence ready for the future."

Following Russia's invasion of Ukraine last year, Germany has spearheaded efforts to strengthen NATO's air defences in Europe by pressing partners to purchase deterrence systems jointly.

“We can see with the daily Russian attacks on Ukraine how important anti-air defence is,” Pistorius said.

According to Gallant, the agreement's signing was a "moving event for every Jew" in light of the Holocaust's atrocities.

“Only 80 years since the end of the Second World War yet Israel and Germany join hands today in building a safer future,” he said.

– Sky shield –

Designed to take down missiles above the Earth's atmosphere, the long-range Arrow 3 system is effective enough to provide cover for neighbouring European Union states.

Israel and the United States jointly developed and constructed the system, and Washington had to authorize the sale before it could be completed.

Israel has utilized the system to defend itself against assaults from Iran and Syria since its initial deployment at an Israeli Air Force facility in 2017.

According to its creator, Israel Aerospace Industries, Arrow 3 is a "mobile system" that can be deployed based on the threats encountered.

The funding for the agreement comes from a historic 100 billion euro fund that German Chancellor Olaf Scholz revealed to strengthen the nation's defences after Russia invaded Ukraine.