Israel buys N-subs 'to counter Iran threat'

Under the contract signed in July, the two Dolphin-class submarines, called U212s, will be assembled in Germany and fitted with a propulsion system allowing them to remain underwater for far longer than submarines already in use by the Israel navy, the Jerusalem Post said.

The state-of-the-art submarines, manufactured by Howaldtswerke-Deutsche Werft AG, will be bought by Israel for 1.27 billion dollars, a third of which will be financed by the German government, the English-language daily said.

The U212s are designed for a crew of 35, have a range of 4,500 kilometers and can launch cruise missiles carrying nuclear warheads, the paper quoted the Jane's Defense Weekly as saying.

Israel's defense ministry said it was unable either to confirm or deny the report.

The navy already has three German submarines -- the most expensive weapon platforms in Israel's arsenal that are also thought to be able to carry nuclear weapons.

Israel has never acknowledged possessing a nuclear arsenal although it is widely believed to have one.

Germany donated the first two submarines after the 1991 Gulf War and split the cost of the third with the Jewish state.

The Jerusalem Post also said the navy was considering installing an underwater sonar system off the coast to detect foreign submarines.

In November 2004, Israel spotted a mystery submarine in its territorial waters, which a naval official said was a foreign vessel on a spying mission.