Israel Railways awarded a ILS558m ($155m) rail contract to a consortium of Minrav Engineering and Construction and Moscow Metrostroy.
The project involves construction of a 7km tunnel and other works on the last section of the Tel Aviv-Jerusalem high-speed railway line, which is 3.5km long.
The railway line includes laying a 38km double track, building ten bridges and three tunnels as well as an underground terminal at a depth of 80 metres.
The companies will build two parallel tunnels, one for each track, according to globes.co.il.
The project includes Israel's longest tunnel at 11.6km, and longest and highest bridge at 1.25km at a height of 90 metres.
Work is scheduled to begin next year and is expected to be complete in 2016.