The deal will provide further evidence to Tehran that Baku is becoming a key ally for Israel in the region.
Israel has repeatedly threatened to attack Iran in recent weeks claiming it is seeking nuclear weapons, a claim Tehran has denied.
Israel possesses the Middle East's only nuclear arsenal.
Azerbaijan, which shares a border with the Islamic Republic, has improved its relations with the Jewish state.
A report in The Times of London two weeks ago claimed that Baku was a key base for Israeli Mossad intelligence agents looking to spy on Iran.
It quoted an unnamed Mossad official saying: "our presence here is quiet, but substantial. We have increased our presence in the past year, and it gets us very close to Iran. This is a wonderfully porous country.” Azerbaijan denied the claim.
Israel's ties with Azerbaijan, a Muslim country that became independent with the disintegration of the Soviet Union, have grown as its once-strong strategic relationship with another Iranian neighbor, Turkey, has deteriorated.
It was not clear whether the arms deal with Azerbaijan was connected to any potential Israeli plans to strike Iran. The Israeli defense officials spoke on condition of anonymity because they were not at liberty to discuss defense deals.
Al-Akhbar, AP
US Envoy to Russia: Kyrgyz Airbase not to be Used against Iran
Israel has repeatedly threatened to attack Iran in recent weeks claiming it is seeking nuclear weapons, a claim Tehran has denied.
Israel possesses the Middle East's only nuclear arsenal.
Azerbaijan, which shares a border with the Islamic Republic, has improved its relations with the Jewish state.
A report in The Times of London two weeks ago claimed that Baku was a key base for Israeli Mossad intelligence agents looking to spy on Iran.
It quoted an unnamed Mossad official saying: "our presence here is quiet, but substantial. We have increased our presence in the past year, and it gets us very close to Iran. This is a wonderfully porous country.” Azerbaijan denied the claim.
Israel's ties with Azerbaijan, a Muslim country that became independent with the disintegration of the Soviet Union, have grown as its once-strong strategic relationship with another Iranian neighbor, Turkey, has deteriorated.
It was not clear whether the arms deal with Azerbaijan was connected to any potential Israeli plans to strike Iran. The Israeli defense officials spoke on condition of anonymity because they were not at liberty to discuss defense deals.
Al-Akhbar, AP
US Envoy to Russia: Kyrgyz Airbase not to be Used against Iran
Uprooted Palestinian 
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