The German government has approved the controversial sale of three military submarines to Israel following a month-long delay on Monday.
In July, Germany put off the planned signing following the arrest of several Israelis on suspicion of offences including bribery and money laundering around the deal to buy the Dolphin submarines from German industrial giant ThyssenKrupp.
The lawyer is suspected of trading his influence on Netanyahu for a large slice of the deal. Sources involved in the deal said that the attorney-general and officials in the National Security Council and Defense Ministry were involved in a process with the German government that led to a decision to go ahead with the sale.
"Thereby, Germany can contribute to the protection of Israel, and safeguarding its existence, against the background of our historical responsibility for the state of Israel", he said.
Addressing Israel's parliament, Netanyahu told opposition lawmakers that the new deal with Germany helped vindicate him.
"The MOU is strategically important to the security of Israel", Netanyahu said.
Speaking at a news conference in Berlin, government spokesman Steffen Seibert said the government would provide financial support for Israel's purchase of three more high-tech vessels from ThyssenKrupp Marine Systems, but did not specify the amount.
Prime Minister Netanyahu expressed his deep appreciation to Chancellor Merkel, German Defense Minister Ursula von der Leyen and German Foreign Minister Sigmar Gabriel.