"The threat of cyber attacks against Israel comes from Iran and other elements," Prime Minister Benjamin Netanyahu said at the launch of the cyber-warfare programme.
"Our vital systems are targets for attack, and this will only increase as we enter the digital age.
"We are bolstering our ability to deal with these threats and are building a digital Iron Dome," he said at Ashkelon.
The Israel National Cyber Bureau will run the three-year programme to develop expertise in cybernetics and computers among outstanding high school students, Xinhua reported.
Cyber security has become a national priority in Israel, with significant resources being invested in protecting the military and civilian computing networks.
