Israel's defence ministry said on Monday it had signed a deal with Athens worth approximately €3 billion to set up the "Achilles Shield" aerial defence system for Greece.

"Under the deal, Israel will build Greece a comprehensive, multi-layered air defence array, drawing entirely on Israeli-made systems and on the extensive operational experience Israel's defence establishment has gained during the war," the ministry said in a statement.

"This is the largest defence export deal in the history of Israel-Greece relations and one of the largest in the history of the State of Israel," it added.

The deal was signed by the Israeli defence ministry's director general, Major General Amir Baram and his Greek counterpart, Ioannis Bouras, in Tel Aviv.

A Greek defence ministry source had told the AFP news agency in late July about an upcoming purchase of Israeli-made anti-missile, anti-aircraft and anti-drone systems, part of a broader defence investment for the Achilles Shield of €4.2 billion.