The United States and Israel conducted the joint test early Tuesday, targeting a simulated Iranian missile, The Jerusalem Post reported.
The Israeli air force, the Defense Ministry's Homa Missile Defense Agency and the U.S. Missile Defense Agency participated in the test, the newspaper said.
Defense Minister Ehud Barak described the test as "exceptional," saying it "moves Israel closer to providing a multi-layered system intended to answer to a variety of threats, " Ynetnews.com said.
Homa head Arieh Herzog said the Arrow system worked as designed and destroyed the target. It was the 18th test of the Arrow system, the paper said, noting the interceptor used in the test had new software.
"This test is important for Israel as it prepares to counter the ballistic missile threat in the region," the paper quoted Herzog as saying. "This test proves the success of the system after it underwent new upgrades."