"The United States has concluded a new ten-year Memorandum of Understanding (MOU) with Israel on security assistance for fiscal years 2019 through 2028," the statement said. "This MOU constitutes the single largest pledge of bilateral military assistance in US history."
Earlier on Tuesday, US media reported that the United States was on the verge of reaching the deal, under which it will provide Israel with $38 billion in aid, or $3.8 billion per year.
The current agreement, which ends at the end of 2018, totaled $3 billion annually before additional US Congress allocations. Israeli Prime Minister Benjamin Netanyahu had sought a deal totaling $45 billion over ten years.
The MOU will be signed in Washington, DC on Wednesday, the State Department said.
