Israeli and American teams are putting together a plan to increase annual U.S. military aid to Israel by as much as $1 billion, on top of the current $3.1 billion, a source close to the military aid process said Wednesday.

Talks on military aid started recently, and are now being discussed by the professional staffs of the two countries’ defense establishments. For now, Israeli defense officials are calling news of the large aid increase “rumors.”

Israel refused to hold talks on the military aid framework and the “compensation package” it will receive because of the Iranian nuclear agreement, until that agreement was approved. […]