Japan's parliament has approved a new agreement with the United States for government spending of more than 1 trillion yen ($8 billion) to deploy US troops, AP reported.

The 1.05 trillion yen ($8.6 billion) host country support budget covers the procurement of advanced arsenals used in joint military exercises, as well as utilities and facilities used by US troops and Japanese personnel working at US bases in the country until March 2027.

The upcoming five-year budget includes a new funding category of up to 20 billion yen ($164 million) for the purchase of advanced virtual combat training systems for the two forces' joint exercises.

The Japanese government describes the host nation's support budget as necessary to strengthen the alliance.

Japan has been increasing its defense budget and capabilities for about a decade and is now revisiting its key national security strategy in the face of threats from China, North Korea.