US Congress has approved a deal to significantly increase the stockpile of military equipment held in Israel over the next two years in a move to upgrade military ties between the two allies.

The deal will see $400m of smart bombs and other precision weaponry and equipment moved to Israel over the next two years.

Under the terms of the US foreign aid law governing reserve stockpiles for allies, the armamanets will be available for use by the US and Israel.

The total value of US military equipment stockpiled in Israel will be $1bn in 2011, with another $200m to be added in 2012, according to Agence France Presse.