Obama, Netanyahu may agree defence deal in Washington next month, envoy says

U.S. President Barack Obama (2nd R), Israeli Prime Minister Benjamin Netanyahu (2nd L) and President Shimon Peres (R) take their seats during an official welcoming ceremony at Ben Gurion International Airport near Tel Aviv March 20, 2013. REUTERS/Nir Elias

JERUSALEM (Reuters) - U.S. President Barack Obama and Israeli Prime Minister Benjamin Netanyahu might meet in Washington next month and complete a deal on future defence aid to Israel that has been dogged by disagreement, the U.S. ambassador to Israel said on Thursday.

Current U.S. defence aid to Israel, worth about $3 billion (£2 billion) annually, expire in 2018. Disputes over the value of a so-called Memorandum of Understanding setting out grants over the ensuing decade prompted Israel to signal this week it might wait for the next U.S. president in hope of better terms.