Germany's Defence Minister Annagret Kramp-Karrenbauer announced on Friday that rabbis would be introduced in the German army to look after the spiritual needs of Jewish soldiers.
According to the defence minister, ten rabbis will begin working for the Bundeswehr in the coming months.
After signing the agreement, President of the Central Council of Jews in Germany Josef Schuster called the day "historic" for the relations between Germans and Jews:
"People who consider themselves to be part of a democratic society should and must take responsibility for it," he said, adding that the move is "a signal for... the strength of democracy".
Besides the restoration of rabbis in the military, Germany is considering introducing Muslim religious counsellors.
Currently, the German army has 180,000 soldiers with around 90,000 of them Christians, 3,000 Muslims and 300 Jews.