Greece finalised a deal on Tuesday for the purchase of two Bergamini class frigates from Italy, its defence ministry said, as the NATO country looks to modernise its armed forces.
Greece agreed last year a plan to buy the two used Bergamini class frigates from Italy and kept an option to buy two more.
Defence Minister Nikos Dendias and Italian counterpart Guido Crosetto the "implementing arrangement" in Rome, the Greek defence ministry said in a statement.
It did not give the value of the transaction, but Greek media said it could amount to between €500 million ($581.50 million) and €600 million.
Together with four French-built "digital" Belharra frigates, the two Bergamini ships will form the backbone of the Greek Navy for the years to come.
Greece, which spends nearly 3.5 per cent of its gross domestic product on defence, a higher proportion than many fellow NATO countries, plans to spend about €28 billion as part of a multi-year defence plan by 2036 as it tries to keep pace with historic rival Turkey.
(Reporting by Lefteris Papadimas; Editing by Susan Fenton)