Netanyahu said the deal was signed between Israeli and German military officials last week in the German capital.
“We purchased four new Sa’ar vessels,” the Israeli Premier said during a graduation ceremony for the Israeli military pilots.
Netanyahu also praised German Chancellor Angela Merkel “for her commitment and constant assistance to our security.”
He, however, did not say when the ships would be delivered.
According to the German newspaper Bild am Sonntag, the Merkel administration contributed 115 million Euros to the estimated one-billion-Euro deal. Germany often subsidizes Israeli military projects.
Netanyahu said the Sa’ar vessels will join the German-made Dolphin-class submarines already in the employ of the Israeli Navy.
Israel seeks to use the fleet to protect an array of off-shore gas extraction facilities in the Mediterranean Sea.
Germany, which is considered as Israel’s top navy supplier, has delivered five Dolphin-class submarines to Israel in recent years.
In March 2012, Israel signed a contract for a sixth Dolphin-class submarine to be delivered in few years.
source: Bild am Sonntag; Agencies