US Secretary of Defense Chuck Hagel and Israeli Minister of Military Affairs Moshe Yaalon have finalized a new arms deal worth USD 10 billion.

"Minister Yaalon and I agreed that the United States will make available to Israel a set of advanced new military capabilities ... including anti-radiation missiles and advanced radars for fighter jets, KC135 refueling aircraft, and most significantly the V-22 Osprey…," Hagel said in a joint press conference in Tel Aviv on Monday.

Hagel arrived in Israel on Sunday at the start of a six-day regional tour, his first since taking over as the Pentagon chief two months ago.

Meanwhile, Israel admitted to attacking a scientific research facility in Syria back in January, claiming the airstrike destroyed a convoy of advanced weapons that was bound for Lebanon's Hezbollah movement.

Hagel is set to visit Cairo, then Riyadh and Abu Dhabi to finalize details of a USD 10 billion arms deal that will also provide sophisticated missiles to Saudi Arabia and US F-16 fighter jets to the UAE.

The Pentagon chief’s trip comes a month after US President Barack Obama visited Israel and reaffirmed Washington’s backing of Tel Aviv while promoting fresh attempts to revive Israeli-Palestinian peace talks.