Israel said on Thursday it is developing a new ballistic missile shield, the Arrow 4, with the United States, another layer in a defensive system built with an eye towards Iran.
Israel's Arrow 2 and Arrow 3 interceptors are already operational as part of a multi-layered system to destroy incoming missiles in the atmosphere and in space.
"The development of Arrow 4 together with our American partners will result in a technological and operational leap forward, preparing us for the future battlefield and evolving threats in the Middle East and beyond," Defense Minister Benny Gantz said in a statement.
Israeli leaders have described Iran's ballistic missile program as a threat to Israel and the world. Iran says its missile development is defensive and aimed at deterring attack.
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The Defense Ministry said Israel Aerospace Industries would serve as the prime contractor for the Arrow 4. Boeing and Israel's Elbit Systems are also part of the Arrow defence project.