Tel Aviv, Dec. 18 -- The German Bundestag has approved an expansion of the deal to purchase Israel's Arrow 3 missile defence system, adding an estimated USD 3.1 billion to what is already the largest defence export agreement in Israel's history, Israel's Ministry of Defence announced n Wednesday.

The expansion completes a USD 3.6 billion sale signed two years ago, bringing the total value of the Arrow 3 deal between Israel and Germany to more than USD 6.7 billion. According to the ministry, the agreement represents the highest-value defence deal ever reached by the State of Israel.

Arrow 3 is an exo-atmospheric missile defence system designed to intercept long-range ballistic missiles. It was jointly developed by the Defence Ministry's ...