German submarine specialist ThyssenKrupp Marine Systems (TKMS) could be contracted to build additional three Dolphin-class submarines for the Israeli Navy.
According to German media, the deal is estimated to be worth around 1.8 billion euro as the submarines cost 600 million euro apiece.
Georg Streiter, German deputy government spokesperson, told reporters that discussions about the construction, which would possibly be subsidized by Germany, were ongoing.
Israeli newspaper Ma’ariv reported that a letter of intent would be signed on November 7, if negotiations go according to plans.
Israel already operates operates five Dolphin submarines built in Germany, with a sixth expected to enter service in 2018.
The Dolphin-class is divided into two batches of boats. The first three submarines that were commissioned between 1999 and 2000 were enlarged German 209-class submarines while the second batch submarines, delivered from 2014 onward, feature AIP (air-independent propulsion) and are rumored to carry nuclear missiles.