The package includes HIMARS rocket systems, howitzers, anti-tank missiles, drones and parts for other equipment, according to Taiwan's foreign ministry.

The potential size of the deal rivals the $18 billion of military sales to Taiwan agreed by then-US President George W. Bush in 2001, though that was ultimately downsized after commercial negotiations.

The United States does not recognise Taiwan as a country but is the self-ruled island's biggest security backer.

Its arms supplies are a key deterrent against a potential attack from China, which claims Taiwan is part of its territory and has threatened to use force to bring it under its control.

"This is the second arms sale to Taiwan announced during the Trump administration's second term, once again demonstrating the US' firm commitment to Taiwan's security," Taipei's foreign ministry said.

Its defence ministry said the sale is expected to officially take effect in about one month.

Even though the deal still needs approval from the US Congress, it is unlikely to fail given the cross-party consensus on Taiwan's defence.

Taiwanese President Lai Ching-te's government has vowed to ramp up defence spending as China maintains military pressure around the island.

Taiwan has its own defence industry but the island's military would be massively outgunned in a conflict with China, and so remains heavily reliant on US arms.