JERUSALEM - Israel's Defence Ministry has begun coordinating joint preparations with the German Federal Ministry of Defence for the initial deployment of Israel's Arrow-3 missile interception system on German soil in 2025, it said on Sunday.

The ministry said it has held meetings at Israel Aerospace Industries (IAI) along with Israel defense firm Elbit Systems and MBDA Deutschland GmbH.

The Arrow system, which includes the Arrow-2 and Arrow-3 interceptors, was developed in cooperation between Israel and the United States to counter long-range ballistic missile threats, with IAI as the prime contractor.

READ MORE: Israel successfully tests Arrow-2 anti-missile system

Israel, with US approval, agreed last year to sell the Arrow-3 system to Germany in a $3.5 billion deal, its biggest defense sale to date.

Germany and its neighbors in Europe are boosting defense spending following Ukraine conflict.

The US is a partner in the Arrow project and Boeing is involved in its production.

Arrow is the upper layer of Israel's missile defenses, together with the Iron Dome, which takes out short-range threats such as mortars and rockets, and mid-range defender David's Sling.

Arrow-2 intercepts ballistic missiles at long range, while the newer Arrow-3 specializes in knocking out missiles before they re-enter the Earth's atmosphere.

Using cutting-edge technologies, the system proved effective against Iranian missile attacks in April and October.

READ MORE: Israel, Germany sign record-breaking $3.5b missile deal

After the Arrow systems helped to thwart Iran's massive missile and drone attack in April, a number of countries are interested in purchasing the technology, according to IAI.