U.S. near $10 billion arms deal with Israel, Saudi Arabia, UAE

WASHINGTON (Reuters) - The United States is finalizing a complex $10 billion (6.5 billion pounds) arms deal that would strengthen two key Arab allies while maintaining Israel's military edge, defence officials said on Friday ahead of a trip to the Middle East by Defence Secretary Chuck Hagel.

The deal, more than a year in the making through a series of coordinated bilateral negotiations, would result in the sale of V-22 Osprey aircraft, advanced refuelling tankers and anti-air defence missiles to Israel and 25 F-16 Desert Falcon jets worth nearly $5 billion to the United Arab Emirates.