The air forces of the US and Israel have reportedly commenced the bi-annual Blue Flag joint Air Force exercise at the Ovdat Air Force Base in the northwest of Eilat.
The two-week air force drill, which also includes other allies, is aimed at strengthening the military ties between the countries.
A statement from the Israeli military cited by Reuters read as: "(Blue Flag) creates a multi-national learning environment, including fictional countries, in which participants can practice planning and execution of large air force operations."
The latest Israel-led combat drill follows a similar exercise which occurred two years ago.
The earlier exercise, which involved forces from the US, Italy and Greece, was aimed at improving joint aerial operations and to rehearse other capabilities, Haaretz reported.
Meanwhile, the US and Israel are reportedly planning to agree on a ten year military aid package.
The new package will extend the current $3bn grants to Israel. The existing aid package is due to expire in 2017, the news agency reported.
Commenting on the latest military co-operation, US Marine general Joseph Dunford was quoted by Reuters as saying: "Through all of the ups and downs in a family relationship, the military-to-military relationship has remained strong.
"The challenges that we face, we face together."
In June, the US-Israel missile defence systems programme secured increased financial support from the US House Appropriations Subcommittee on Defence.
The funding includes $55m for the Iron Dome anti-rocket defence system, $146.1m for the Arrow Weapon System, and $286.5m for the David’s Sling Weapon System.