"In the process of negotiations on financial assistance…the sides made progress and closed gaps between them…Israel and the US hope to reach an agreement soon," the source said.
The press briefing wrapped up three days of meetings between Jacob Nagel, acting chief of Israel’s National Security Council, and a US delegation headed by National Security Adviser Susan Rice.
Israel has been seeking financial assistance from the United States to offset Iran’s new nuclear capabilities, following the lifting of sanctions last July.
Israel has been receiving $3.1 billion annually in US military funds under a deal that is set to expire in 2017. But Washington has demanded that it spend the money on US-made weapons, which could cost Tel Aviv jobs.