The announcement came as Palestinian president Mahmud 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 fighting on two fronts, with Hamas militants in the Gaza Strip and Hezbollah fighters over the border in Lebanon.

"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 against Hezbollah targets in Lebanon this week, which Lebanese authorities say have killed hundreds of people and displaced thousands.

Israeli forces have also been battling Hamas militants in Gaza since the Palestinian group attacked Israel on October 7.

That attack resulted in the deaths of 1,205 people on the Israeli side, most of them civilians, according to an AFP tally based on Israeli official figures, which include hostages killed in captivity.

Militants also seized 251 hostages, 97 of whom are still held in Gaza, including 33 the Israeli military says are dead.

Israel's retaliatory military campaign has killed at least 41,534 people in Gaza, the majority of them women and children, according to figures provided by the health ministry in the Hamas-run territory.

The United Nations acknowledges the figures as reliable.