The Israel Ministry of Defense on Thursday signed an agreement to purchase three new Thyssenkrupp Marine Systems Dakar-class submarines for $3.4 billion, the ministry said.

The agreement also includes an industrial strategic cooperation piece that amounts to $961 million as well as construction of a simulator in Israel, logistics support package, and supply of spare parts.

Israel said the first new submarine will be delivered within nine years as part of an effort to replace the first three of Israel’s five current Dolphin-class submarines, which were also German-built. A sixth newer Dolphin-class vessel is under construction.

“The Dakar class will be of a completely new design, which is to be specifically engineered to fulfill the operational requirements of the Israeli Navy,” Thyssenkrupp said in a statement.

“I would like to thank the German government for its assistance in advancing the agreement and for its commitment to Israel’s security,” Israel Defense Minister Benny Gantz said in a statement.

Rolf Wirtz, CEO of Thyssenkrupp Marine Systems, said the vessels will provide Israel with advanced capabilities.

“This agreement demonstrates the deep commitment of Thyssenkrupp Marine Systems to guarantee Israel’s long-term security. It was signed after a thorough and extensive groundwork process, and I would like to thank our partners in the Ministry of Defense and the Israeli Navy for their commitment and professionalism,” he said in a statement.