Israel will receive military aid valued at 30 billion dollars from the United States in the following decade after representatives of both countries signed an agreement on Thursday in Jerusalem.

Present in Jerusalem, US Undersecretary of State for Political Affairs Nicholas Burns outlined the importance of the pact saying it will boost Israel’s security, a matter that is in the best interest of both nations.

“This contribution will allow Israel to plan its defence expenditures in a way that is rational,” he said. “We look at this region and we see that a secure and strong Israel is in the interest of the United States.”

Burns said this latest agreement doesn’t impose any conditions or restrictions and will increase the “level of bilateral cooperation” in the next decade.

”The Middle East is more dangerous today than it was 10, 20 years ago. The regional dangers seem only to increase as Iran develops nuclear technologies and along with Syria supports organizations like Hamas, Hezbollah and the Islamic Jihad,” Burns added.

Israel is one of the closest allies of the US in the Middle East and Thursday’s deal represents an increase of 25 per cent compared to previous defence assistance offered by the Bush administration. But Washington said its other allies will benefit from the same support because “the road to peace includes showing countries like Iran and Syria that the US reinforces its allies' militaries.”

Only 26.3 per cent of the aid can be converted in Israeli currency in order to acquire military equipment from national companies. The rest will be used fro purchasing equipment from the United States.

Israeli Prime Minister Ehud Olmert and US President George W Bush met earlier this year and established the final aspects of the aid that has a “critical importance” to Israel, as the Bank of Israel Governor Stanley Fischer said. 

The aid’s first part will be transferred to Israeli accounts in October next year.