The Israeli Navy has asked Germany to finance another Dolphin Class submarine, which will be built at the German shipbuilding company Howaldtswerke-Deutsche Werft (HDW).
Germany has paid for five previously ordered submarines, the fourth and fifth of which were delivered in September 2009. The ships are the upgraded versions of the original Dolphin and feature an air-independent propulsion system.
The first two submarines, Dolphin and Leviathan, were given as a gift by Germany after it was revealed that German companies were involved with Iraq's chemical weapons programme.
Israel now intends to order a sixth submarine and has asked the German Government to finance at least part of the estimated $750m price tag.
The 190ft non-nuclear Dolphin Class submarines are capable of firing torpedoes, anti-ship missiles and mines and can also launch the Popeye Turbo cruise missiles armed with nuclear warheads that have a range of up to 930 miles.