Israel says developing new Arrow-4 ballistic missile shield with U.S.

Israel said on Thursday it isdeveloping a new ballistic missile shield, the Arrow-4, with theUnited States, another layer in a defensive system built with aneye towards Iran.

Israel's Arrow-2 and Arrow-3 interceptors are alreadyoperational as part of a multi-layered system to destroyincoming missiles in the atmosphere and in space.

"The development of Arrow-4 together with our Americanpartners will result in a technological and operational leapforward, preparing us for the future battlefield and evolvingthreats in the Middle East and beyond," Defence Minister BennyGantz said in a statement.

Israeli leaders have described Iran's ballistic missileprogramme as a threat to Israel and the world. Iran says itsmissile development is defensive and aimed at deterring attack.

The Defence Ministry said Israel Aerospace Industries wouldserve as the prime contractor for the Arrow-4. Boeing andIsrael's Elbit Systems are also part of the Arrowdefence project.