The vessel was taken to Ashdod for further inspectionIsrael's navy has intercepted a ship carrying hundreds of tonnes of weapons 160km (100 miles) off its coast, the military says.
The cache included rockets and missiles, the military said, adding that they originated in Iran and were destined for Hezbollah militants.
Prime Minister Benjamin Netanyahu said the arms were "destined to strike Israel's cities".
The Antiguan-flagged vessel has been towed to the port of Ashdod.
In recent months Israel has stepped up efforts to combat the smuggling of arms to Hamas and Hezbollah militants.
'Numerous weapons'
The Israeli military said marines had boarded the ship after its captain agreed to the search and that no force was used.
The country's deputy defence minister, Matan Vilmai, said the ship's crew were not thought to have been aware of the smuggling operation.
A spokesperson for the military said there were "dozens of shipping containers, carrying numerous weapons, disguised as civilian cargo among hundreds of other containers on board".
The spokesperson added: "The weapons originate from Iran and were intended to reach the Hezbollah terror organisation for use against the state of Israel and its citizens."
The Associated Press news agency reported that the vessel was operated by the shipping company United Feeder Services and that it had said the cargo was picked up in Damietta in Egypt.
Mr Netanyahu congratulated the army, navy and security forces on a successful action to prevent the supply of weapons.
Since Israel's offensive in Gaza last December and January, the Israeli navy and air force have been have conducting intense searches in the Mediterranean and the Red Sea for ships smuggling weapons either to Hezbollah or to Hamas in Gaza.
In February, Israel said a vessel detained off Cyprus was carrying Iranian weapons to Hamas in Gaza. Iran denied the claim.
In 2002 the Israeli navy captured the Karin-A, which was carrying some 50 tonnes of arms thought to be destined for Gaza.
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