Saudi Arabia is in advanced stages of talks with the US to buy two frigates based on Lockheed Martin's coastal warship, which are being built for the US Navy.
The nations could reach agreement by the end of the year, Reuters reported Wednesday.
The frigate sale, valued at well over $1 billion, will be the cornerstone of a long-delayed multi-billion dollar modernization of the Royal Saudi Navy’s Gulf-patrolling eastern fleet of aging US warships and would include smaller patrol boats.
Paperwork for the Saudi deal could be finalized by year's end. The larger modernization effort will encompass training, infrastructure and anti-submarine warfare equipment, and could include orders from other countries.
Saudi Arabia's King Salman is due to meet with US President Barack Obama in Washington this week.
Besides, Saudi and US officials are also finalizing details of a deal worth $1.9 billion to buy 10 MH-60R helicopters, which can be used for anti-submarine warfare and other missions. US lawmakers were notified of a deal in May.
The helicopters are built by Sikorsky Aircraft, a unit of United Technologies Corp and Lockheed, which is poised to take over Sikorsky by year-end.