Citing a letter to the Economy Ministry, local media outlet Spiegel said Rheinmetall intends to sue the German government for loss of revenue if the suspension continues.
Spiegel said Rheinmetall believes it can claim for compensation because the government’s decision affected exports that had already been approved.
The news outlet also said that goods worth up to 2 billion euros ($2.3 billion) are affected by the export suspension, including four Cobra radar systems built by a consortium that includes France’s Thales, Airbus and Lockheed Martin of the United States.
Last week however the German Economy Ministry said the government still had no intention of approving arms exports to Saudi Arabia.
German politicians are reportedly becoming increasingly uneasy with the nations relationship with Saudi Arabia after the killing of journalist Mr Khashoggi.
Recently, Rheinmetall and BAE Systems announced that they have signed an agreement to create a joint UK based military vehicle design, manufacturing and support business.
Rheinmetall will purchase a 55% stake in the existing BAE Systems UK based combat vehicles business, with BAE Systems retaining 45%.
The firms say that the establishment of the new Joint Venture is subject to regulatory approvals which are anticipated to be completed in the first half of 2019.
“Once the approvals have been completed, the Joint Venture will be known as Rheinmetall BAE Systems Land (RBSL). In addition to managing and growing the existing combat vehicle support business, the intent is for the new Joint Venture to play a major role in the delivery of the British Army’s new Mechanised Infantry Vehicle (MIV) and other strategic combat vehicles programmes.”