Israel’s Prime Minister is set to meet US President Barack Obama in New York on Wednesday on the sidelines of the UN General Assembly.

White House Press Secretary, Josh Earnest, said that the meeting will give US President Barack Obama and Prime Minister Benjamin Netanyahu “an opportunity to discuss the strong ties between the US and Israel, as recently underscored by the finalisation of a new ten-year Memorandum of Understanding with Israel, the single largest pledge of military assistance in US history”.

Earnest added that the meeting “will be an opportunity to discuss the need for genuine advancement of a two-state solution… in the face of deeply troubling trends on the ground”. Earnest said that Obama and Netanyahu will also “likely” discuss the nuclear agreement with Iran and other regional issues.

Netanyahu plans to use the meeting with Obama Wednesday to thank him for the $38 billion defense aid deal inked with the US last week, his office said on Sunday.

“The deal shows the depth of the strategic ties and the bond between Israel and the US,” the statement said.

“Netanyahu plans to speak during the meeting with Obama on the challenges and opportunities in the Middle East and ways to advance peace and security together,” the statement added.

Last week, Netanyahu described the new military deal between the US and Israel as “historic”. However, senior figures, including former Prime Minister Ehud Barak and former National Security Advisor Uzi Arad have criticised Netanyahu, saying his attitude towards the Obama administration prevented an even more generous package.

In response, Netanyahu told his cabinet yesterday that the claims were “distortions and fabrications of interested parties”.

He added: “We were never offered more. We were not offered more money, not even one dollar, and we were never offered special technologies.”

It will be the first meeting between the two leaders since November 2015. It is expected to be their last before Obama leaves office in January.

The new military package signed last week will grant Israel $3.8 billion annually — up from the $3 billion pledged under the previous 10-year Memorandum of Understanding — starting in 2018 and through 2028.

The agreement includes the development of missile defence systems and an agreement by Israel that Congress will not be approached for additional missile defence budgets. Israel also agreed to the gradual phasing out of the right to use up to 26 per cent of military aid to purchase equipment from Israeli defence industries.