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BERLIN (Reuters) - Germany will wait for Israeli prosecutors to conclude all investigations in a corruption scandal involving Prime Minister Benjamin Netanyahu before delivering three submarines in a $2 billion defence deal, German magazine Der Spiegel reported.

The weekly magazine reported that the German government had signed a memorandum of understanding (MoU) with Israel under which a declaration by the Israeli government would not be regarded as sufficient evidence that the affair was concluded.

The 2016 deal has been under public scrutiny since it emerged that Netanyahu's personal lawyer also represented the local agent of the German conglomerate ThyssenKrupp Marine Systems set to build the vessels.

(Reporting By Thomas Escritt; Editing by Maria Sheahan)

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