Israel and the US have agreed a military aid deal described as the largest package of defence assistance to any country ever.

The record-breaking deal - reportedly of at least $38bn (about £28bn) - is expected to be signed later on Wednesday at a ceremony at the State Department in Washington.

The pledge by the US - lasting for the next 10 years - is known as a "memorandum of understanding".

Under the agreement, Israel cannot seek extra money from Congress beyond what is guaranteed annually.

And unlike previous deals, the arrangement will also see the phasing out of a clause which allowed Israel to spend part of its US aid on its own defence industry, instead of on weapons made in America.


Israel's demand to be allowed to spend some of the funds internally had been a major point of dispute in the deal.

The $3.8bn-a-year pact is scheduled to start in 2019 and comes after months of talks which some sources described as "tetchy".

Image: The relationship between Mr Netanyahu and Mr Obama has often been tense

At one point Israeli Prime Minister Benjamin Netanyahu controversially indicated he might wait for the next US president before striking a deal.

The relationship between President Barack Obama and Mr Netanyahu has often been tense with the two men frequently clashing over issues in the Middle East.

Ties with Washington worsened significantly when the US and world powers struck a nuclear deal with Iran.

Israel considers a nuclear-armed Iran to be an existential threat and Mr Netanyahu was furious at Mr Obama's assertion that the deal made Israel safer by curtailing Iran's nuclear programme and ambitions.

Traditionally, Israel is viewed as a stalwart ally of the US and is seen as a key strategic partner giving America a strong military foothold in the Middle East.