Jan 27 (Reuters) - Israel is preparing for talks with the Trump administration on a new 10-year security deal, seeking to extend U.S. military support even as Israeli leaders signal they are planning for a future with reduced American cash grants, the Financial Times reported on Tuesday.
Gil Pinchas, speaking to the FT before stepping down as chief financial adviser to Israel's military and defence ministry, said Israel would seek to prioritise joint military and defence projects over cash handouts in talks that he expected to take place in the coming weeks.
The U.S. State Department did not immediately respond to a Reuters request for comment outside regular business hours.
"The partnership is more important than just the net financial issue in this context ... there are a lot of things that are equal to money," Pinchas told the FT. "The view of this needs to be wider."
Pinchas said pure financial support - or "free money" - worth $3.3 billion a year, which Israel can use to purchase U.S. weapons, was "one component of the MOU (that) could decrease gradually."
In 2016, the U.S. and Israeli governments signed a memorandum of understanding for the 10 years through September 2028 that provides $38 billion in military aid, $33 billion in grants to buy military equipment and $5 billion for missile defence systems.
Earlier this month, Israeli Prime Minister Benjamin Netanyahu said he hoped to "taper off" Israeli dependence on U.S. military aid in the next decade.
(Reporting by Disha Mishra in Bengaluru; Editing by Thomas Derpinghaus)
