"Extra investment in defence is a necessity because our surrounding safety zone has become a more instable place," the Defence Ministry said.

"There are more threats to contend with and threats have become more complex," it added in a statement, issued after a weekly cabinet meeting in The Hague.

Both US President Donald Trump and NATO chief Jens Stoltenberg have called on allies in the defence bloc to up their defence spending and member states in 2014 agreed to aim to spend two percent of GDP on their militaries.

"This plan shows that cabinet is serious about the current threats. The Netherlands must take steps to show it will remain a reliable partner," Defence Minister Ank Bijleveld added.

The plan consists of buying a further batch of F-35 stealth fighters to supplement 37 planes already on order, and "to improve land and sea-based firepower."

It also looks at improving special forces and cyber warfare capabilities.

Details of the plan and budget will be released in the spring of 2019, the Defence Ministry said.