Israel and the United States are holding talks about U.S. economic aid to replace an $800 million package promised by former President Bill Clinton and frozen by President George Bush.
The two sides are discussing three options: U.S. guarantees for loans that Israel would take on the open market, a U.S. grant, or a U.S. loan on easy terms.
Israeli Finance Minister Silvan Shalom will meet senior U.S. officials next month to discuss ways for the United States to help Israel.
Clinton promised an $800 million grant to help with Israel's costs in withdrawing from southern Lebanon in 2000 and for developing strategic defence systems but it was frozen by Bush when he entered office last year.
Officials at the Finance Ministry and Prime Minister's office were not available for comment.