JERUSALEM, Nov 10 (Reuters) - 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 defence 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.

Israel, with U.S. approval, agreed last year to sell the

Arrow-3 system to Germany in a $3.5 billion deal, its biggest

defence sale to date.

Germany and its neighbours in Europe are boosting defence

spending following Russia's war in Ukraine.

The U.S. is a partner in the Arrow project and Boeing ( BA )

is involved in its production.

Arrow is the upper layer of Israel's missile defences,

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 specialises 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.

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.