The proposed sale includes up to 20,000 Advanced Precision Kill Weapon Systems and their warheads, which are designed to minimize collateral damage in close combat situations.

The principal contractor for this massive arms deal will be BAE Systems, based in Nashua, New Jersey.

"The proposed sale will improve Saudi Arabia's capability to deter current and future threats by strengthening its homeland defence, and improving interoperability with US forces, and other regional and NATO forces," the department release said.