A Defense Ministry statement said Ehud Barak believes that a multi-layer active defense system to intercept rockets and missiles could ensure "that an absolute majority" of missiles will not reach their targets.

Israel's vulnerability to such weapons was exposed during last year's Lebanon war when Hezbollah fired thousands of rockets and, as late as Sunday, when Palestinian militants continued firing Qassam rockets from the Gaza Strip.

Israeli military analysts have concluded that Syria learned the lesson of the Lebanon war and would focus on such strikes in case of a new war.

Israel already has an operational system, called Arrow, against long-range ballistic missiles, including Iranian missiles with nuclear warheads.

It is developing another rocket interceptor, in a project called Kipat Barzel (Hebrew for Iron Dome), against Qassams and Katyusha rockets. A third system that the government-owned Rafael has been developing with the U.S. firm Raytheon is called "Sharvit Kesamim," or magic wand, which is supposed to intercept medium range rockets such as the Iranian Zelzal.

Channel 2 TV that filmed Barak's visit to Rafael Monday said that a project for melting rockets with laser beams is also on the table, after it had been shelved in the past.

Barak wants to build two more divisions and improve active protection for tanks and troop carriers. He also wants to reinstate the training levels that had existed in the past.

The United States has agreed to increase its military aid to Israel to $3 billion a year over the coming 10 years and Barak will try to convince Israeli Finance Minister Ronni Bar-On to provide the rest of the money.