German Defense Minister Peter Struck has finally given green light for the delivery of two submarines to Israel which are also capable of carrying nuclear warheads, IRNA reported from Berlin.

"We are certainly prepared to help Israel in the acquisition," the minister said Thursday in an interview with the economic daily Handelsblatt.

Berlin halted unexpectedly last November the delivery of two German-made 'Dolphin' submarines to Israel, citing fears of a new arms race in the Mideast region.

The center-leftist German government coalition also expressed deep concerns after Israel modified three other German submarines with nuclear warheads.

Germany built and delivered at no cost the three submarines for Israel in 1999 and 2000.

Although Berlin is legally banned from exporting arms to crisis regions, Germany has become one of Israel's major arms supplier.

German arms exports to Israel reached some 900 million dollars between 1998 and 2001.