The Bush administration will move ahead with a high-profile arms sale to Saudi Arabia as early as Monday, as part of a $20bn package of deals with the Gulf States.

The Gulf is gearing up to sign a raft of military contracts after the US last July concluded military assistance agreements with Saudi Arabia and other Gulf states, as part of what Condoleezza Rice, secretary of state, said was an effort to “bolster forces of moderation and support a broader strategy to counter the negative influence of al-Qaeda, Hizbullah, Syria and Iran”.