The U.S. Defense Security Cooperation Agency said the deal would be worth an estimated $1.329 billion.
In addition to the tank kits for co-production, Egypt also requested 125 M256 Armament Systems, 125 M2 .50-caliber machine guns, 250 M240 7.62mm machine guns, 125 AGT-1500 M1A1 series tank engines and transmissions, 120mm test cartridges, spare and repair parts, maintenance, support equipment, special tool and test equipment, personnel training and equipment, publications and technical documentation, U.S. government and contractor engineering and logistics support services.
"The additional M1A1 tanks will provide Egypt with a modern tank fleet, enhancing its capability to meet current and future threats," the agency said in its notification to Congress. "This will contribute to Egypt's goal to update its military capability while further enhancing interoperability between Egypt, the U.S., and other allies.
"Egypt, which has co-produced the M1A1 Abrams tank, will have no difficulty absorbing the additional tanks."
The prime contractors would be General Dynamics in Sterling Heights, Mich., Honeywell International Inc. in Phoenix and Allison Transmission Motors in Indianapolis.