The ISS (Integral-field Spectrograph System) has been designed as part of the EAGLE Phase A Instrument Study for the E-ELT. It consists of two input channels of 1.65x1.65 arcsec field-of-view, each reconfigured spatially by an image-slicing integral-field unit to feed a single near-IR spectrograph using cryogenic volume-phase-holographic (VPH) gratings to disperse the image spectrally. A 4k x 4k array detector array records the dispersed images. The optical design employs anamorphic magnification, image slicing, VPH gratings scanned with a novel cryo-mechanism and a three-lens camera. The mechanical implementation features IFU optics in Zerodur, a modular bench structure and a number of high-precision cryo-mechanisms.