Mr. Peres said Monday that Israel will use the money to remove and resettle Jewish settlers currently living in Gaza and in four West Bank enclaves targeted for closing. The pullout is scheduled to begin next month.
Israel's Haaretz newspaper says the Bush Administration has already agreed in principle to the aid.
It said an Israeli delegation planned to meet in Washington with U.S. officials on Monday to work on details of the package. A report that the meeting already took place could not be immediately confirmed.
National Security Council spokesman Fred Jones told VOA Washington has not approved the package since Israel has not yet made the request.