Germany will build and pay up to one-third of the cost of a sixth Dolphin-class submarine to be delivered to the navy, a German government official said on Wednesday.The agreement in principle to provide the submarine, which foreign reports say enhances Israel’s second strike capability since it can carry nuclear warheads, comes a month after reports that Germany was reconsidering the deal because of anger at the announcement of plans to build some 1,100 housing units in the capital’s Gilo neighborhood, over the Green Line.RELATED:'Germany to finalize sale of Dolphin submarine to Israel' The German official said she did not know whether those reports were accurate. She said Germany will pay up to 135 million euros toward the submarine, which will cost between 372m. and 520m. euros.Talks on the deal for the sub stalled last year after the Germans declined to underwrite it, as they had done with previous submarine purchases.Israel already has three Dolphin-class subs; another two are currently under construction in Germany with expected delivery dates of 2012 and 2013. These submarines are considered Israel’s most sophisticated and strategic weapon. The deal for these submarines was agreed upon in 2005, under the government of chancellor Gerhard Schroeder.Germany gave Israel the first two submarines of this class after the First Gulf War in 1991, and – according to the German press – split the cost of the third.Yaakov Katz contributed to this report.