Germany is now Israel’s closest ally in Europe, Israel’s ambassador to Berlin has said, as he hinted that a new defence pact between the two countries could soon be announced.

In an interview with The Sunday Telegraph, Ron Prosor said Germany has become Israel’s “second strategic partner” after the United States, in part due to its “amazing” response to the October 7 Hamas attacks.

But he also stressed that the relationship had grown much deeper due to an “awakening” in Germany about the threat posed to European security by Iran, which funds Hamas operatives on the continent and supports Russia’s war against Ukraine.

“For years Israel has been saying watch out for the Mullahs and Ayatollahs in Iran. It’s not Israel’s problem, it’s a world problem. And I think there’s an awakening - not just in Germany but let’s focus on Germany - on the fact that suddenly drones made in Iran with cooperation with Russia are being seen over Ukraine,” Mr Prosor said.

“The cooperation between Russia and Iran is strengthening and there is a real change in the national security policy of Germany in understanding that, yes, we have to stand up to challenges that we did not have answers for in the past,” he added. “They are acutely aware there is a change.”

Iran is a financial backer not only of Hamas, but also the Houthi rebel faction in Yemen which has wrought havoc on global shipping routes this month with a string of attacks on commercial ships in the Red Sea.

Britain would typically be considered Israel’s closest European ally, but Germany and Israel have recently embarked on a major new security partnership which includes the sale of the Israeli Arrow 3 air defence system, which will be used to defend Europe’s skies from Russia.

The Arrow 3, which will cost Germany about €4 billion (£3 billion), is a long-range air defence system capable of shooting down ballistic missiles, warheads and hypersonic missiles. It is understood that Germany hopes the system, which was part of Israel’s biggest ever defence sale, could be used to defend EU airspace in the event of a war with Russia.

Germany has also stepped up action against Hamas in Europe, such as a series of raids last week on Hamas members in Berlin who were allegedly plotting to attack Jewish institutions in Europe with a stash of buried weapons.

Mr Prosor went on to hint that “there is stuff going on” in terms of what “Germany needs in defending itself”, without giving further details.

Tehran’s decision to sell supplies of missiles and drones to Russia for its war on Ukraine has also deeply alarmed European and US officials.

Mr Prosor also endorsed new rules being introduced in a German state that will make support of Israel a condition to acquire German citizenship.

The state of Saxony-Anhalt announced in December that anyone seeking German citizenship will be required to state in writing “that they recognise Israel’s right to exist and condemn any efforts directed against the existence of the State of Israel”.

The policy could eventually be adopted across the German federal system, part of a wider shift in Germany that is partly driven by a desire to atone for the Nazi regime and the Holocaust.

In terms of its Nazi history, Mr Prosor said Germany had “scrutinised its past in an amazing way and looked themselves in the mirror on all dimensions”.

But he expressed concern about a “worrisome” surge in support across Germany for the hard-Right AfD party, which includes members who have deployed extreme rhetoric, such as drawing comparisons between the German Covid vaccine drive and Nazi pogroms.