The Israel Ministry of Defense (MoD) has signed an estimated €430m contract with German shipyard ThyssenKrupp Marine Systems (TKMS) to purchase four advanced surface vessels for the Israeli Navy.

The new corvettes, which will be constructed at the German Naval Yards in Kiel, and the vessels are expected to be delivered over the next five years.

For this project, Germany will provide a special grant of €115m, a third of the total cost.

Israel MoD director general major general Dan Harel said: "This deal that was signed today is a very significant event that represents a dramatic leap forward in our navy's ability to defend the government of Israel's strategic sites in the field of natural gas at ranges of tens and hundreds of kilometres out at sea.

"Nearly ILS1b ($181m), will be returned to Israeli industry as a result of associated procurement orders."

"Additionally, it serves as a significant economic springboard to the Israeli economy as nearly ILS1b ($181m), will be returned to Israeli industry as a result of associated procurement orders."

Israel will manufacture the combat systems of these vessels, which according to the MoD will guarantee the flow of new orders in significant quantities for the country's defence industry.

The new vessels are expected to be smaller than the 1840t displacement featured in standard Blohm + Voss-class 130 corvettes, however, they will be able to accommodate a utility helicopter and two medium-altitude, long-endurance UAVs.