Swedish APCs are seen in Visby harbour, island of Gotland Thomson Reuters STOCKHOLM (Reuters) - Sweden's center-left minority government said on Wednesday it had agreed with two opposition parties to boost military spending in the 2018 budget as the country faces increased tension with Russia in the Baltics.

Sweden's armed forces will get around 2 billion crowns ($250 million) extra in the 2018 budget and around 6 billion crowns during the 2018-2020 period in the deal between the Social Democrat and Green party coalition and the opposition Moderate and Centre parties, Swedish Radio reported.

Sweden's military has said it needs the money to rebuild its strength after years of under investment and greater demands on its operational capabilities.

The armed forces called for 9 billion crowns in extra spending during 2017-2020 period.

Minister of Defence Peter Hultqvist will hold a press conference later on Wednesday.

The budget for 2018 - an election year - will be presented on Sept. 20.

Sweden has reintroduced conscription and restored troops to the strategically key Baltic island of Gotland as it looks to bolster its defenses.

It has also been drawing closer to NATO, although the government has ruled out becoming a member of the alliance.

(Reporting by Johan Sennero; Editing by Simon Johnson and Toby Chopra)