The two are to design and produce a system to protect Israel against Kassam rockets fired from the Gaza Strip.
The country faces almost daily rocket strikes against Israeli towns in the western Negev, according to the Jerusalem Post newspaper, adding that the rockets could also threaten key installations in the centre of the country if smuggled into or manufactured in the West Bank.
Debra Rub-Zenko, vice-president for Boeing Integrated Missile Defense, says: "This is an opportunity to build on the exceptional partnership that Boeing and IAI have established through the co-production of the successful Arrow II interceptor.
“It is our privilege to join forces once again with IAI to provide leading edge technology to rapidly and effectively address threats as they evolve."
Boeing and IAI worked together on the co-production of the Arrow II interceptor - an anti-ballistic missile defence system currently in use in Israel.
Source: Flight Daily News