The US has reportedly agreed to increase military aid to Israel from the current $30bn to $38bn for a period of ten years.
The latest deal comes as the previously signed agreement is due to expire in 2018.
Under the previously signed agreement, Israel received $3.1bn every year.
Washington Institute for Near East Policy Middle East Peace Process project director David Makovsky was quoted by CNN as saying: “It's an important message to the region that nobody should misread the differences between the US and Israel when it comes to Iran or policy differences when it comes to the Palestinians.
"At the core, the US remains very committed to Israel's long-term security."
The latest deal is said to be the biggest military assistance from the US to any country to date.
Under the deal, Israel cannot request additional funds from the US beyond what is being offered as part of the new deal, Reuters reported.