Greece is in talks with Israel to develop a 2 billion euro ($2,11 billion) air and missile defense turret, part of a wider push to modernize its armed forces as it recovers from a protracted debt crisis, Greek officials said.

The defense would likely mimic Israel's Iron Dome and other systems that intercept short- and long-range rockets launched during attacks by its neighbors amid ongoing conflicts in Gaza and Lebanon.

Greece wants to invest in its defense to keep up with its NATO ally and arch-rival Turkey, which is also developing its own air defenses, despite some improvement in relations.

"The plan is to create a multi-layered anti-aircraft and anti-drone system," a source with knowledge of the matter told Reuters after a closed-door briefing with Greek Defense Minister Nikos Dendias.

"We are in talks with Israel," the source said.

A second official confirmed the scope of the potential deal, adding that Greece is to spend 12,8 billion euros by 2035 to modernize its armed forces.

The air defense is part of Athens' 10-year military procurement plan, which includes the purchase of about 40 new F-35 fighter jets and drones from the United States and four Belharra frigates and Rafale jets from France.

"Our efforts are for a rapid transition of our armed forces into the 21st century," Defense Minister Dendias said before the briefing.