The announcement came as Palestinian president Mahmoud Abbas hit out at Washington in his address to the UN General Assembly in New York, accusing it of providing Israel with the "deadly weapons that it used to kill thousands of innocent civilians, children and women".

The aid package comes at a time when Israel is carrying out deadly assaults on Gaza to the south and Lebanon to the north.

"The package includes $3.5 billion for essential wartime procurement ... and $5.2 billion designated for air defence systems, including the Iron Dome, David's Sling and an advanced laser system," the ministry said in a statement.

The deal was concluded after a series of high-level meetings between Israeli and US officials in Washington, the ministry said.

Some $3.5 billion had already been received "for critical acquisitions", it said.

The additional $5.2 billion is intended to upgrade Israel's air defence systems, it said.

"This substantial investment will significantly strengthen critical systems such as Iron Dome and David's Sling while supporting the continued development of an advanced high-powered laser defence system currently in its later stages of development," the ministry added.

Israel has carried out hundreds of air strikes on Lebanon this week, which Lebanese authorities say have killed hundreds of people and displaced thousands.

Israeli forces have also been waging a brutal war on Gaza that has killed tens of thousands and displaced the majority of the territory's 2.4 million Palestinians.

Gaza's health ministry says Israel's relentless bombardment and ground invasion have killed at least 41,534 people, mostly women and children, and have reduced the Gaza Strip to rubble.

The United Nations acknowledges the figures as reliable and that most of the dead are women and children.

*This story was edited by Ahram Online.