Visitors watch a demonstration at the Israel Aerospace Industries (IAI) booth in the IMDEX Asia maritime defense exhibition in Singapore, May 19, 2015. Photo: Reuters / Edgar Su.

State-owned Israel Aerospace Industries (IAI) said on Wednesday it signed an agreement with US planemaker Boeing last week to cooperate on commercial and military aviation in Israel and some other markets.

As part of the agreement, Boeing is expected to provide IAI with contracts worth billions of shekels, relating to potential sales of its new tanker aircraft and other defense products.

Boeing last month entered into a “reciprocal procurement” partnership with Israel, agreeing to spend billions of dollars in the country over the coming decade if it wins major defense contracts.

That agreement called for Boeing to collaborate with Israeli industries for at least 35 percent of the value of any transaction it signs with the Israeli government.

The Israeli Air Force is evaluating the procurement of fighter aircraft, helicopters and tanker aircraft from Boeing that could be worth more than $10 billion.