The plan allows for the sale of 84 F-15 fighter jets, 70 Apache attack helicopters, 72 tactical Black Hawk helicopters and 36 light helicopters, assistant secretary for political-military affairs Andrew Shapiro said.
The sale, which also includes the upgrade of 70 used F-15s, is "not to exceed 60 billion" dollars, Shapiro told reporters as President Barack Obama's administration notified Congress of its plans to make the deal.
Congress has the authority to amend or delay the agreement, according to Shapiro, who said he did not expect Israeli opposition to the sale.
The delivery of the weapons to oil-rich Saudi Arabia would be spread over 15 to 20 years.
"It will send a strong message to countries in the region that we are committed to support the security of our key partners and allies in the Arabian Gulf and broader Middle East," Shapiro said.
Though he said the deal is "not solely about Iran," Shapiro admitted it is partly intended to help Saudi Arabia counter the perceived threat from the Islamic republic across the Gulf.
US defense officials said the deal had been in the works for months with the Saudis, who have grown increasingly anxious about Iran's missile arsenal.
A senior defense official told reporters last month that "if you look at the kingdom, the major threat that they face in the region emanates from Iran."
The official, who spoke on condition of anonymity, said the arms package "gives them a whole host of defensive capabilities to defend the kingdom and deterrence capabilities."
The defense package also includes thousands of laser-guided smart bombs, including JDAMS, as well as Hellfire and Sidewinder missiles.
Arms sales to Saudi Arabia in the past have triggered concerns from Israel and its supporters in the United States, but US officials said they did not expect opposition.
"Our assessment is that this (sale) would not diminish Israel's qualitative military edge, and therefore we felt comfortable in going forward with the sale," Shapiro said.
Vershbow said US officials consulted Israel as the deal took shape.
"There have been high-level discussions, as well as working-level discussions. And I think it's fair to say that, based on what we've heard at the high levels, Israel does not object to this sale," he said.
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