Jerusalem, Oct 29 (IANS): The Israeli Defence Ministry said that it has signed a 2-billion-shekel ($537 million) deal to expand the production of the Iron Beam laser interception system, which is expected to join Israel's air defence array in about a year.

The agreement was signed on Monday with two Israeli defence technology companies -- the system's main developer, Rafael Advanced Defense Systems, and Elbit Systems, said the ministry in a statement.

Iron Beam is a laser system for air defences from the ground against aerial threats from rockets, mortar bombs, drones, cruise missiles, and more, reports Xinhua news agency.

The ministry noted that the system is set to be integrated into Israel's "multi-layered" defences as a complementary capability to the Iron Dome, David's Sling, and Arrow systems, which are based on interceptor missiles and used during current conflicts.

"The integration of Iron Beam will enable a major improvement in Israel's defence capabilities against existing and future threats and at significantly lower costs," read the statement.