Iraq intends to spend $13bn on US arms and military equipment, tanks, ships and hardware.
Half of the $13bn of sales are finalised contracts and the rest are under negotiation, with 140 US M-1 tanks under planned purchases according to usatoday.com.
Iraq has also requested 18 F-16 Falcon fighter jets as part of a $3bn programme that includes aircraft training and maintenance.
Under the potential deal, the first aircraft could be delivered in early 2013 with the first ten pilots undergoing training in the US.
The US Army officer for training and advising Iraq forces, Lt Gen Michael Barbero, said the procurement would help Iraq build a modernised and sophisticated military to secure its borders and repel threats.