The US State Department said on Friday that it approved the possible sale of Advanced Precision Kill Weapon System (APKWS) and related equipment to Israel.
The estimated total cost is $992.4 million, it said in a statement.
"The proposed sale will improve Israel’s capability to meet current and future threats, strengthen its homeland defense, and serve as a deterrent to regional threats. Israel will have no difficulty absorbing these articles and services into its armed forces," it added.
The principal contractor will be BAE Systems in the US state of New Hampshire.