US Undersecretary of State Nicholas Burns is set to sign a deal that will provide Israel with $30bn (£14.8bn) of military aid over the next 10 years.

The Israeli prime minister, Ehud Olmert, has said the aid will preserve his country's military advantage over other countries in the Middle East.

The new military aid package represents a 25% increase from present levels.

The US announced multi-billion-dollar arms deals with Saudi Arabia, Egypt, and other Gulf states last month.

Washington says it wants to help its allies in the Middle East meet their security needs and counter the growing power of Iran in the region.

'Qualitative advantage'

Burns will meet Olmert in Jerusalem on Thursday morning to sign a memorandum of understanding on the new aid package.

It will see Washington transfer $30bn over the next decade, compared to $24bn over the past 10 years. The first payment of $2.55bn will be made in October 2008.

The money must be used to purchase military equipment from the US defence industry, although Israel will also be permitted to use 26.3% to buy equipment from local companies.

After arriving in Jerusalem on Wednesday evening, Burns met Olmert briefly.

Olmert asked the US envoy to thank President George W Bush and the secretary of state, Condoleezza Rice, for their efforts in bringing about the accord.

"The aid agreement with the US is an important and significant component for Israel, and proves once again the depth of the relationship between the two countries and the United States' commitment to Israel's security, and to preserving its qualitative advantage over other countries in the Middle East," Olmert said.

After signing the aid deal, Mr Burns will meet Foreign Minister Tzipi Livni, Defence Minister Ehud Barak and other Israeli officials for "discussions on regional security, including the challenge posed by Iran".

PHOTO CAPTION

Israeli Defence Minister Ehud Barak, seen here in June 2007, has said that neither Israel nor arch foe Syria is interested in a war, as he observed military exercises in the occupied Golan Heights. (AFP)

BBC