The US State Department has approved the sale of 5000 Hellfire missiles to Iraq as Baghdad tries to fend off militant Islamist forces.
The deal is valued at $700 million (NZ$822m), the Defense Security Cooperation Agency said.
Iraq had requested 5000 of the air-to-ground missiles, which are manufactured by Lockheed Martin Corp and enable helicopters to battle tanks and other armored vehicles.
Much smaller Hellfire shipments have already been sent to Iraq.
Parts, training and logistical support are part of the new deal.
Iraq's US-trained and -funded army has unraveled as Sunni insurgents have taken swathes of northern and western Iraq.
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