The purchase comes as the country seeks to upgrade its military equipment -- and further boost ties with Israel, already a close Czech ally.

The defence ministry said it would pay 13.7 billion Czech crowns (540 million euros, $630 million) for the system made by Israeli state-run company Rafael.

The contract also involves supplies by Czech companies amounting to more than 30 percent of its value.

The ministry added in a statement that it had considered nine different systems from seven producers.

"Israel's Spyder emerged as the most efficient one from the comparison. It is a solution adjusted to Czech needs, compatible with NATO standards and with the involvement of Czech industry," it said.

Defence Minister Lubomir Metnar hailed the purchase as a step towards getting rid of a Soviet-made system from the 1970s which "does not correspond to current air defence standards".

The Czech Republic joined NATO in 1999, 10 years after former Czechoslovakia shed the totalitarian Communist regime that had been in power for four decades.